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Cellular VoIP In US, Western Europe To Outgrow Fixed VoIP
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Revenues in the cellular VoIP segment in the US and Western Europe will exceed those in all fixed VoIP services by 2012, suggests Analysys.
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Monday, September 18, 2006:
Going by the latest report from Analysys, the global advisers on telecoms, IT and media, by 2012, the cellular VoIP services are poised to generate revenues worth $18.6 billion in the US and $7.3 billion in Western Europe, compared to fixed VoIP services which are likely to rake in revenues worth $11.9 billion and $6.9 billion in these regions, respectively.
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The Analysys report, titled `Forecasting the Commercial Impact of Wireless VoIP in the USA and Western Europe', suggests that following the upgrade of CDMA2000 1× Evolution Data Optimised (EV-DO) networks to Revision A from 2007, and the upgrade of W-CDMA networks to 3G Long Term Evolution (LTE) from 2010, there would be a compelling case for mobile operators to migrate their voice services from circuit-switched voice to VoIP.
“The capacity, cost per megabyte and quality of service of existing 3G cellular technologies -- including EV-DO Revision 0 on CDMA2000 networks and High Speed Packet Access (HSPA) on W-CDMA networks -- are not yet adequate to support a significant move to wireless VoIP services,” notes the report’s co-author, Mark Heath. “However, EV-DO Revision A and 3G LTE will, respectively, create the cost benefits and new service opportunities that trigger the migration to mass market cellular VoIP.”
According to the Analysys report, by 2015, cellular VoIP will carry 28 per cent of all fixed and mobile voice minutes in the US and 23 per cent in Western Europe. Besides, mobile operators will position cellular VoIP as a premium voice service, emphasising quality of service and a range of value added features, such as presence information, instant messaging and multimedia sharing, in order to resist the erosion of voice prices.
The report predicts that cellular VoIP will dominate the mix of wireless VoIP services in developed markets. In this process, VoIP over wireless local area networks (VoWLAN) and VoIP over broadband wireless access (BWA) technologies, such as WiMAX, are very likely to be relegated to niche roles.
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