Until recently, mobile operators did not consider web technology to be a major threat. But, with broadband networks becoming ever more efficient and blanket wi-fi coverage in most major cities expected within the next few years, internet telephony will soon be going mobile.
VOIP, or voice over internet protocol, is the technology used to transmit voices over the web. Most users exploiting the technology are still tied to their desktops and require headsets, but next-generation handsets allowing people to talk while on the move via broadband networks are already available. So-called ‘smart phones’ allow mobile users to place calls using web services such as Skype, MSN and AOL in wi-fi, or wireless, hotspots.
Skype, currently the biggest player on the VOIP market, is busy working with handset manufacturers such as Nokia. “We’re on the desktop, but the next step for Skype is the other place where the internet is so strong, which is mobile. For Skype to be successful, desktop and mobile are critical,” says Henry Gomez, director of operations at Skype.
The technology has the potential to shake up the market significantly. Currently, the mobile market is dominated by operators owning valuable spectrum, the finite natural resource needed for mobile communication, but this state of affairs could soon change.
In the age of internet telephony, new entrants will not have to own or operate networks to provide services.
In regulatory terms, VOIP is stuck somewhere between the largely unchartered waters of the internet and the heavily regulated telecoms market. But, given its future importance, it will not escape more targeted regulation for long. Information Society Commissioner Viviane Reding announced this year that she will initially be taking a light-touch approach. EU regulations could eventually cover the integration of traditional phone networks into the VOIP system, quality issues and emergency services access.