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For a mobile subscriber in India, it may sound utopian to be able to make international calls without paying anything to their service provider. But many cellular subscribers in the US and other developed countries are using services like Gorilla and iCall, by relying on Voice over Internet Protocol (VoIP) technology that delivers speech via Internet. These Internet-based technologies are extensively used by the developed world to route wireless calls virtually toll-free.

VoIP calling has already put a dent on the price of landline calling, and now the technology is set to nibble into sales of mobile phone service providers also. Already, over 338 mn people are making free PC-to-PC calls using Skype. A new product-'Skype for your mobile'-is further going to make things simpler for mobile users, enabling them to use local wireless minutes to make international calls.

Skype has launched VoIP in Apple iPhones, and plans for another launch with RIM's Blackberry platform later this year, clearly indicating the fact that the market for mobile VoIP has gained importance recently.

Wireless VoIP services vary widely in their operations, but all these services help users to elude at least some of the charges associated with long distance wireless calling. Some services like Jajah are effortless and can be used with a basic cell phone. All that one is required to do is call a local number that connects to a particular service that routes the call overseas. The other services can appear to be a complex procedure for a not-so-tech savvy user as the he/she will need to download software on an Internet enabled cell phone. In some cases, calls must be placed via WiFi network.

Breaking the Ice
To remain competitive, the operators have become more receptive to mobile VoIP, which for the past few years was dreaded as a wave that could wash out carriers' revenues. Microsoft has bowed to VoIP operators and allowed Skype on its Windows mobile operating system. The software giant has prohibited the creation of VoIP for its new applications marketplace, which will be accessible through Windows 6.5, set to be released later in 2009. The ban comes after a growth in tension between operators and VoIP providers on the use of the free calling services over 3G networks.

However, some service providers have realized the potential of the technology. T-Mobile in Germany revealed that it will no longer block VoIP applications. Skype being the prime example, the company said that it will charge extra money from those using these services. The surcharges will start at 9.95 per month. Later this year, another service provider, Carrier 3, that offers services in Britain and Italy, plans to sell its new version of Skypephones that will allow users to call up their Skype contacts without using talk time.

It is estimated that the global market opportunity for mobile VoIP is as big as the ICT market itself. The number of mobile subscribers is expected to reach 6 bn by 2013, and smartphones are predicted to grow over 50% of the total handset market.

On the whole, the growth in the mVoIP market will continue to be propelled by factors like increase in demand for Internet and communication services, reforms and deregulation in the telecom industry, and innovation and development of communication technologies. At the same time, consumer demand for cheaper communication services will continue to rise.

Heena Jhingan
heenaj@cybermedia.co.in