Google’s recent acquisition of GIPS, a VoIP and video technology provider playing in the mobile market space, could spell opportunities for Google channel partners and ISVs – at the expense of more traditional players in the market such as telecom carriers. New research from Frost & Sullivan indicates those traditional players may have no choice but to embrace it. Channel Insider takes a deeper look.
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Telecommunications Carriers Struggle with Mobile VoIP
Google’s recent acquisition of GIPS, a VoIP and video technology provider playing in the mobile market space, could spell opportunities for Google channel partners and ISVs – at the expense of more traditional players in the market such as telecom carriers. New research from Frost & Sullivan indicates those traditional players may have no choice but to embrace it.
Mobile VoIP Anticipated to Explode
Global Mobile VoIP revenues are expected to grow to $29.57 billion by 2015, according to analyst firm Frost & Sullivan. That represents a massive increase from 2008’s $605.8 million, where the majority of the cash was generated from North America, Europe, Asia Pacific and Latin America.
What’s Driving Mobile VoIP adoption?
"The emergence of flat rate mobile data pricing, positive growth of smartphone shipments, and high-speed mobile broadband availability has spurred the adoption rate of mobile VoIP," says Frost & Sullivan Senior Industry Analyst Saverio Romeo.
Dominant Mobile OS Supports VoIP
Device manufacturers and Google are jumping on the Mobile VoIP bandwagon. GIPS became the first company to offer Mobile VoIP on Android devices, and there are a variety of third-party apps available for the iPhone, too. LG and Motorola also planned to bundle GIPS’ technology on some of their phones to increase voice quality and offer VoIP services.
Market Disruptions and Reactions
Mobile Operators around the globe are trying to figure out how to deal with the growing popularity of VoIP. Recent surveys show almost 70 percent of European carriers are shutting it down completely. Some domestic carriers, like Sprint, are embracing it, but as the market grows, Frost & Sullivan says carriers must figure out a way to make it work or lose customers.
Why are Mobile Operators Hesitant?
The telco space is crowded and competitive, and users are demanding more cost-effective solutions. Plenty of IT solution providers are working on VOIP projects to help those users achieve cost savings.
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