An Optimistic Look into Mobile VoIP

Tuesday, December 1, 2009

Voice over Internet Protocol (VoIP) refers to a technology for delivering voice communications over Internet Protocol (IP) networks rather than the Public Switched Telephone Network (PSTN). To facilitate an Internet call, the analog voice signal is first converted into digital format and then compressed into IP packets for transmission over Internet. The process is then reversed at the receiver point.

Mobile VoIP, abbreviated as mVoIP, is an extension of VoIP to mobile devices. Mobile VoIP is currently meant for customers who are always on-the-go and want to make long distance calls. The technology is gaining popularity primarily due to the cost benefits offered to residential and business customers for making international calls.

Technology

Mobile VoIP involves integrating the mobile handset into an IP network. This can be done using several techniques. One of them is to turn the mobile device into a standard SIP client. For this, the mobile handset should support high-speed IP communications. In such a technique, standard VoIP protocols are used over any broadband IP-capable wireless network connection such as EVDO rev A, HSDPA, WiFi or WiMAX.

Mobile VoIP can also be implemented using a softswitch like gateway that bridges SIP and RTP into the mobile network's SS7infrastructure. In this technology, while the mobile handset continues to operate in the standard format (GSM or CDMA), it can also be controlled by an SIP application server that provides advanced SIP based services to it.

Mobile VoIP Market Today

Currently mobile operators are not very keen to offer mobile VoIP to their customers. This is mainly due to the lower demand for VoIP services from customers. Very few customers rely on VoIP to make international calls currently. The bigger issue is that cheaper VoIP calls which are offered over the unlicensed spectrum are, in fact, a real threat to operators offering voice services over their costlier networks.

However, with the emergence of 4G technologies such as LTE and WiMAX, mobile VoIP will gain momentum, says a new report from In-Stat. 4G technologies are characterized by greater network capacity and security – two major concerns related to mobile VoIP. 4G networks are also capable of offering voice, data and streamed multimedia to users anytime, anywhere at much higher data rates than that offered by prevailing technologies.

In-Stat researchers say that once 4G networks are in place, they will be layered onto the existing networks, and service providers will be able to offer mobile VoIP as a replacement of legacy cellular voice technologies, not just for long distance calls but for all calling.

The report Mobile VoIP Transforming the Future of Wireless Voice estimates that “by 2013, mobile VoIP applications will generate annual revenues of $32.2 billion, driven by more than 278 million registered users worldwide.”

In-Stat describes various scenarios by which VoIP is integrated into mobile interface not only to offer cheaper international calls to users but also to provide them with rich communication experience. One of them integrates Mobile VoIP into a unified mobile interface to social networking sites. In another scenario, MVNOs and 3G operators without legacy networks are using Mobile VoIP to more cost effectively add voice to data offerings. In yet another scenario, a few carriers are using a form of Mobile VoIP, UMA, to support better indoor coverage and off-load macro networks.

According to In-Stat, the EMEA region has more mobile VoIP related revenue currently. The research agency also predicts that Asia Pacific will be the largest regional market by 2013. The subscribers and the revenue associated with mobile VoIP will be divided among online mobile VoIP providers, 3G-based mobile VoIP providers and WiMAX and LTE players. Considering the huge demand of VoIP-enabled mobile devices, In-Stat predicts that nearly 400 Million dual-mode handsets will be shipped in 2013.

“While Mobile VoIP still poses a direct threat to operator voice revenue, it also represents a dynamic new capability that promises numerous applications,” In-Stat report said. In-Stat also reveals that the activities associated with early mobile VoIP successes are likely to influence LTE operator voice plans in ways that potentially favor IMS.

Mobile VoIP will emerge as an important service as mobile device manufacturers further exploit the power of processors to design cheaper memory cards to meet user needs. Smartphones, once considered as the choice of the ‘elite’, are now evolving to fit the needs of ordinary customers. A recent research by ABI Research, “Smartphone and OS Markets” says that 45 percent of smartphones will be priced below USD200 by the year 2014. The research also finds that the largest increase in smartphone shipment volumes over the next five years will be found in the $100 to $200 price range. These changes will be mainly driven by the emerging 4G technologies and associated services including mobile VoIP.

Why Operators Fret over Mobile VoIP?

While mobile VoIP is a cost-effective option for the end-users, the service poses a real threat to mobile operators. As mobile VoIP depends on Internet Protocol, users want to get the service free (apart from the Internet costs) and flawless. Such a scenario challenges the existence of the main revenue-generating service in telecommunications – the voice.

Frank Dickson, In-Stat analyst, says, “Applications such as Skype and Vonage have influenced users to think of voice as a data application. The increasing penetration of Wi-Fi in mobile devices was the beach head that mobile VoIP applications needed. As user habits are being shaped by rich on-line communication experiences, mobile carriers control over devices and data applications is waning. Mobile carrier attempts to slow the spread of on-line Mobile VoIP are proving challenging as well.”

Operators have already sensed the danger, and a few of them have decided to rethink their strategies on offering VoIP over their networks. Instead of considering it as a threat, they are trying to explore the technology to offer services that will generate more revenue. In a recent such move, AT&T, the largest telecommunications services provider in the United States, revised its strategy on VoIP applications running on Apple iPhones. It now lets Apple run the VoIP applications on AT&T wireless network, not just the Wi-Fi networks as agreed in their previous policy.

For some operators, mobile VoIP promises as a channel to offload their demands. T-Mobile is using the dual-mode handsets as a ‘type of femtocell’ that switches user calls from their traditional wireless backbone onto a home network, In-Stat analyst said.

Mino Wireless USA, a leading provider of managed alternative roaming services, offers mobile VoIP calls to forty different countries. The service is offered with a flat monthly fee and 2.2 cents per minute to customers of Cingular, Nextel or T-Mobile services for Internet data.

When mobile VoIP evolves further, next-generation mobile communications services will include fee-based packaged offerings such as service convergence, full duplex video telephony, instant messaging, unified messaging, multimedia advertising, multiparty gaming, video streaming, Web/audio/video conferencing, and push-to-talk among others, say experts. All of these promise new revenue generating opportunity for the providers.

Fighting for Survival

Mobile VoIP market is facing tough challenge due to opposition from incumbent carriers. Mobile VoIP startups like Truphone are victims of anti-VoIP campaign from leading carriers. T-Mobile UK has been blocking access to Truphone, making it impossible for T-Mobile customers to call Truphone numbers. Their policy, as they told to Truphone, is that they don’t connect to VoIP-based low-cost calling services.

Truphone’s mobile VoIP client allows users to make cheap calls over dual mode phones like Nokia N95 and Nokia E-Series phone. Truphone offers free calls, SMS and voice mail while logged into the Truphone network via Wi-Fi. Otherwise, Truphone forwards calls to users’ mobile handset and they pay a low per-minute charge.

Earlier too, Truphone’s plans had been vetoed by telecom majors. Orange and Vodafone had prevented Truphone from working on devices that carried their own version of the operating system. After this issue, Vodafone announced a new policy that will make the data plans for anything other than browsing and email more expensive. Surely their aim was to sever the mobile VoIP at its budding state itself.

How long will they be able to stop mobile VoIP providers? The question contains the answer as more and more mobile VoIP providers are emerging leaving no better option for conservative mobile operators. Ultimately, the market is driven by end-users who primarily look for cost benefits. Mobile VoIP will be the best-ever option for such customers.

Leading Mobile VoIP Providers

Skype

Skype Mobile has been offering mobile VoIP services on 50 popular phones from Nokia, Sony Ericsson, Motorola and Samsung for free of cost. The service can be used on numerous cellular data networks. The service includes group chatting, presence setting and Skype-to-Skype calls. Skype also offers 3 Skypephone to customers in UK, Italy, Austria, Hong Kong, Australia, Ireland, Denmark and Sweden. The phone costs about USD 98 and can be used on a pre-paid basis. Calls cost nothing if they’re made from Skype. iSkoot is another service that works on mobile handsets such as BlackBerry, Nokia, Windows Mobile and Palm OS models. It also works on GSM networks. Since iSkoot is a hybrid VoIP/GSM service, it uses SMS and mobile minutes when making and receiving calls or Skype IM messages, so it is more expensive.

Google Voice

Google Voice currently allows free calls all 50 states in the United States including Alaska and Hawaii. Users can get these free calls through their online Google account, through their mobile applications, or by just dialing the Google Voice number from any regular phone and choosing the option 2 to place a call. The service, which is currently available only in the United States, will undoubtedly extend to other countries very shortly.

Jajah

According to officials at Jajah, users can save up to 98 percent on their international phone calls from mobile or landline phones. Jajah IP Platform, which the company claims as the world's only complete IP voice and messaging platform, is now offered to carriers, Internet companies, mobile operators and service providers to deploy and manage new, value-adding services and solutions.

Nimbuzz

Nimbuzz is available for Symbian phones; they are working on an iPhone version. The service is free. It allows users to engage in IM conversations and conduct VoIP calls, as well as to share media such as photos and video. Nimbuzz also allows for client-to-client calls and has widgets enabling calls to originate from Facebook and MySpace. The service is compatible with Skype, Google Talk, AOL Instant Messenger, Windows Live Messenger, Yahoo, MySpace, Facebook and Jabber IM networks.

Talkonaut

Talkonaut service works for Java-based phones, Symbian and Windows Mobile. The service includes free VoIP and IM chatting. Talkonaut supports Google Talk, ICQ, AIM, and Yahoo. Talkonaut can also use SIP for VoIP calling.

Gizmo 5

Gizmo 5works on Nokia Symbian handsets, BlackBerry, Windows Mobile, Nokia Tablets. It offers free VoIP calls and low per-minute charge to call landlines and to SMS to mobiles. It allows IM conversions with Gizmo5, MSN, AIM, Yahoo and Jabber users. The mobile client supports several mobile phone platforms and on both Mac and PC. Voice quality is commendable.

Vopium

Vopium leverages mobile VoIP and Wi-Fi technology to offer heavily discounted international phone calls made from mobile phones. Vopium integrates directly with the user’s mobile address book, and automatically re-route all international calls via the least expensive method available, say company officials.

xMax

xG Technology’s xMax is a mobile VoIP solution that enables consumers to benefit from much lower cost mobile calls via the Internet. “xMax is similar to Vonage or Skype, but in the form of a fully mobile handset that doesn’t require the use and extra cost of a computer or broadband Internet connection,” xG officials said.

Security and Reliability of Mobile VoIP Networks

As compared to the PSTN networks, the IP networks are less reliable, so they are prone to congestion and DoS attacks. The IP network does not provide a reliable mechanism to ensure that data packets are delivered in a sequential order. Mobile VoIP, therefore, may face problems mitigating latency and jitter. A number of protocols have been defined to support the reporting of QoS/QoE for VoIP calls. The latest amendment IEEE 802.11e to the IEEE 802.11 standard defines a set of QoS enhancements for wireless LAN applications through modifications to the Media Access Control (MAC) layer. The standard is considered of critical importance for delay-sensitive applications, such as Voice over Wireless IP.

Conclusion

With VoIP services gaining significance because of their cost-effectiveness, authorities are now keen to act in favor of customers. Government agencies such as the US Department of Justice (DOJ), the Federal Communications Commission (FCC) and the European Union are looking at the practice of allowing VoIP over mobile. If such a move succeeds in addressing the concerns of both the operators and customers, mobile VoIP will emerge as the most cost-effective and efficient way of communication.