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Wholesale VoIP Feature Article

What's Hot in Wholesale, Mobile VoIP Now

February 13, 2013

By Susan J. Campbell, TMCnet Contributing Editor

It’s one thing to tout the substantial growth of VoIP, but it’s quite another to prove it with viable statistics. Are companies truly adopting the technology at breakneck speed? Are the benefits heavily outweighing the challenges inherent in migrating to a new system? Does VoIP apply to just one technology or are there different forms of communications leveraged for the features they provide?

A sipnology report set out to dig deeper into the tone in the industry to identify the true numbers and get an accurate feel for the growth of VoIP in the global market. While quantifying the information can be a challenge, the fact that VoIP is growing faster throughout the global market is a fun fact for vendors and those investing in wholesale VoIP as subscribers and traffic increase to generate desired revenue. 

One of the key drivers of this growth in the U.S. was the decision made by the Federal Communications Commission (FCC (News - Alert)) to not limit or control the voice traffic traversing the Internet. Combined with the low price of VoIP, companies and individuals are implementing this communication option at a staggering pace. With the low barriers to entry, the number of vendors also continues to grow, driving an industry complete with extended options and competitive bundles that benefit the customer.

So many benefits are realized, in fact, that home owners are increasingly replacing their landlines with VoIP connections. Landline operators were projected to claim just 26 percent of the market by 2012 as the common carrier market continues to decline. Additionally, SIP trunking appears to be the fastest growing sector within VoIP, with a compound annual growth rate of 89 percent between 2008 and 2013. Even more, worldwide revenue was projected to double between 2009 and 2013, so we’ll see how that plays out toward the end of this year.

Mobile VoIP is also expanding rapidly, with analysts projecting revenue generated in the U.S. exceeding that produced by fixed VoIP. In the U.S., analysts project that mobile VoIP will claim 28 percent of the market, with 23 percent in the EU. As carriers increasingly support mobile VoIP and consumers recognize its cost benefits, adoption may even exceed projections, especially in 2013.

Wholesale VoIP provider, VoIP Innovations (News - Alert) agrees. Last week, TMCnet reported on President Jason Tapolci’s thoughts on the intense adoption of VoIP and the introduction of new players in the market. He believes elements in the market will begin to shift and new specialties will take hold. This is a drastic shift from the early days when wholesale companies tried to satisfy the needs of everyone. Providers are now shifting toward developing specialties, focusing on where they might experience the most success.

Plus, mobile operators are recognizing this new breed of service providers, realizing the huge trend toward mobile VoIP. Now, as mobile VoIP surpasses fixed VoIP in terms of revenue, operators are focusing on their wireless broadband networks to support the traffic and promote greater profit margins.

Tapolci continues, “Broadband speeds are increasing and services are converging, creating a new revolution with wireless networks and handheld devices…This new revolution has started changing the landscape of the wireless mobile industry because innovative technologies have started hitting the market.”

Needless to say, the industry will continue to evolve and the opportunities are likely to come to those who can anticipate and embrace the trends.

Want to know more about what’s hot in mobile VoIP? Stay tuned for a follow-up article where Tapolci personally sits down with TMCnet to discuss this topic in more detail.

Edited by Allison Boccamazzo

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