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RSS feedsWestern European mobile users can look forward to lower phone bills if an expected price war breaks out as 3G operators aggressively try to win market share.
Industry experts predict that revenues from fixed voice could fall by as much as one third over the next five years, representing €29bn, as 3G operators aggressively target the voice market.
According to a newly published report from market watcher Analysys, both fixed-line and 3G operators will begin offering large bundles of minutes in an attempt to become the sole voice supplier for their customers.
The study noted that any move that slows the fall in voice revenues is worth a great deal to incumbent operators facing the prospect of declines of between six and 10 per cent per year depending on how aggressively 3G operators target fixed voice substitution.
"If new features made possible by Voice over IP, including presence-based services and true integration of fixed and mobile services, could reduce the decline in fixed voice revenues from six to four per cent, that would be worth €2bn to €3bn to a large European operator," said report author Margaret Hopkins.
The report compared the business case for deployment of VoIP as part of a multi-service architecture with those for continuing to maintain the existing Public Service Telephone Network or upgrading it using current technology. The savings from the former were found to be "considerable".
A number of incumbent operators are responding to the changing voice market by using VoIP and optimising their fixed networks for broadband, according to the Analysys report.
Hopkins suggested that BT's plans to migrate to VoIP have the potential to bring savings of 43 per cent on the operational expenditure costs of the voice network and deployment of broadband, as well as the ability to offer more sophisticated broadband products.
See also:
All Mobile Communications
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