VOIP Industry: Market Research Reports, Statistics and Analysis

Key Segments

• The number of mobile VoIP users throughout the world is expected to reach close to 170 million by 2015, according to research from IDATE Consulting & Research. This accounts for 6% of 3G subscribers and 2% of mobile subscribers. VoIP technology is expected to carry over 100 billion minutes of mobile voice calls by 2015. Mobile VoIP will grow parallel to the existing voice market, without taking over the latter. VoIP has advantages over the traditional operator voice model, including free VoIP-to-VoIP client calls and lower cost international calls. However, regulative measures will limit mobile termination rates and roaming fees, thereby restricting the VoIP price advantage. Obstacles to market growth include commoditization and a competitive environment.

• The global IP Multimedia Subsystem (IMS) constitutes a system to operate and develop applications supporting any-network on any-device, reports Mind Commerce Publishing. IMS allows messaging to break the boundary of mobile via IP to provide a comprehensive service spanning many networks, applications and media.

Industry Leaders

• Traditionally a sole industry leader, Skype is now facing competition from non-VoIP sector players such as Google Voice, Apple’s FaceTime and Yahoo!. The latter’s video calling service pushed Skype to team up with Facebook, reports IDATE Consulting & Research. Apple’s FaceTime is leading the way for industry players to provide video calling over IP. Facebook and Google are getting consumers accustomed to using one platform to use several modes of communication such as voice calls, photo sharing and email. VoIP constitutes an additional service for these outfits as they make their profit from other products and services.

• VoIP outfits and operators are teaming up more frequently: Sprint has partnered with Google Voice; Telefonica took over VoIP provider Jajah in 2010; and Skype has agreements with 3 UK, KDDI and Verizon. As operators cannot prevent the use of VoIP applications, a voice plan is usually a prerequisite for subscribing to a data plan. VoIP is sometimes available only on more costly voice packages, or involves an additional fee.

Regional Market Share

• The EMEA Mobile VoIP market is expected to generate close to $5.5 billion in 2014, reports TechNavio. The availability of next-generation networks is fuelling market growth, with rising usage of social networking sites also expanding. One obstacle to market growth involves the slow roll out of mobile broadband services.

• TechNavio estimates the North American Mobile VoIP market will exceed a yearly growth rate of 55% between 2010 and 2014. Market growth continues to be driven by demand for less costly communication solutions. In North America, an increasingly competitive environment is pushing vendors to offer cheaper services. Rising concern regarding data security among end-users constitutes one potential challenge market growth. Leading venders operating in this market include Fring, Truphone, Vonage and Skype.

Market Outlook

The global VoIP industry will see growth dictated to some extent by regulations. Players will also meet demand by catering increasingly to the business sector, with many companies opting for internal verbal communication over vast distances rather than traditional telephone services.

Leading Industry Associations

• Telecommunications Industry Association www.tiaonline.org
• Voice Over IP Security Alliance www.voipsa.org
• Association for Progressive Communications www.apc.org