Voice Over WiFi Handsets To Take Off This Year - reportOver the...

Voice Over WiFi Handsets To Take Off This Year - report

Over the last two years, WLAN has transformed from a network of stand-alone hotspots into a supporting technology for delivering convergent solutions, clearing the way for VoWLAN. According to a new report from Pyramid Research, VoWLAN mid-tier handsets will come to market this year, placing MVNOs, fixed and cable providers in a position to make a strong play for mobile voice revenues.

"A combination of factors makes the introduction of VoWLAN inevitable, notably demand for mobility emanating from fixed carriers, mobile providers' search for a cheap technology to carry IP voice bundles, and WLAN technology's near-readiness to support voice," says report author Svetlana Issaeva. Pyramid expects WLAN to deliver voice as early as 2006; whether in combination with other technologies, such as 3G, WiMAX or DSL, or on its own in city-wide hotspots.

For fixed and cable providers, the VoWLAN business case is clear - add mobile voice to their portfolio of services to win a share of mobile traffic and retain subscribers. For mobile operators, the case for VoWLAN is less clear.

"We believe the inevitability of VoWLAN leaves mobile carriers with little option but to beat the threat by joining in," comments Issaeva.

Mobile operators will continue to draw revenues from the termination of calls originated on WLAN networks, increase wholesale traffic revenues from fixed-carrier MVNOs, and deploy WLAN networks at a lower cost than mobile IP networks. Additionally, WLAN networks will enable the offloading of cheap voice to low-income segments - including students - allowing the operator to develop flat rate voice plans with lower QoS, which for all intents and purposes is the next step in the evolution of voice services pricing.