by Westron Communications on 14/06/12 at 10:09 am
Voice over IP (VoIP) technology is dramatically changing the telecommunications landscape. Thanks to big savings, flexible features and options for cloud-based services, the market for the global carrier VoIP market is expected to grow at a compound annual rate of 16.6 percent between 2011 and 2015.
This forecast from analyst firm TechNavio attributes this high growth rate to increasing demand for VoIP service from both consumers and businesses. At the same time, competition in the VoIP market, combined with a decline in technology prices, will continue to drive costs down for users.
“The Global Mobile Voice over Internet Protocol (VoIP) Solutions market is witnessing the emergence of many new players because of the presence of several factors, such as low entry costs and huge business opportunities,” said a statement from TechNavio’s telecom team. “These new companies are trying to penetrate the market by offering low-cost communication services. This has resulted in a price war among vendors in the market and the established companies are losing their market share to the new entrants. This trend is expected to grow in the next few years with the market expected to witness the emergence of new global and regional players.”
According to the report, since communication services are constantly in use, there is high demand among users for low call tariffs. Since mobile VoIP services are offered over IP-based communication services and require comparatively low investment as compared to legacy networks, over the top providers (OTTPs) are able to offer mobile VoIP solutions at a much lower cost. This is one of the main drivers in the market.
Another study, this one by Axvoice, predicts that the number of U.S. households with wire line service will drop from 151 million in 2010 to just 135 million in 2015. Over the same time period, the number of cellular subscriptions is expected to grow from about 275 million to more than 450 million. VoIP’s growth, Axvoice predicts, will be even more staggering, on a percentage basis, with roughly 22 million subscriptions growing to approximately 66 million between 2010 and 2015.
Many of the reasons for landline’s struggles are obvious, but worth noting, Axvoice suggests:
- Fixed landline phone subscribers have a fixed line rent to pay, which is quite high.
- With the availability of HD voice, land lines lack the clarity of voice that other networks provide.
- They cannot be relied upon owing to their use of old copper wire technology.
- They are not portable.
As VoIP grows more prevalent, prices and mobility will only improve for businesses.
Has your organization embraced VoIP? Tell us about your cost-savings experiences in the comments.