VoIP undoubtedly has altered the way many people use their phone icluding how long they spend on it. It would also be true to say the emergence of VoIP technology also got some of the Telecoms giants feeling the heat. So is VoIP the future? Will fixed landlines become a thing of the past?. It appears that there are several hurdles which when looked at together, may possible prove insurmountable. For this reason I will suggest that far from being an unstoppable force, perhaps VoIP is on its last legs.
It’s becoming increasingly clear that something being hugely popular and used my millions of people doesn’t necessarily mean that it will make any money. This has been illustrated with both Skype and Facebook as they struggle to find a way of successfully monetizing themselves. The problem with Skype as with other VoIP operators is the strange nature of the relationship with the incumbent telecoms operators. Much in the same way as a parasite is dependent on its host for survival, so too VoIP operators find themselves at the behest of the Telecoms giants whose networks they need for survival.
Lack of any tangible infrastructure poses a big hurdle for VoIP operators, where the competitive nature of the market has also meant prices are tending towards zero. To attract any outside capital or investment, any potential investor needs something more to invest in than the purely the brand. As is the case with some mobile VoIP operators such as the UK start-up Truphone having some proprietary technology of their own has meant they have been able to secure funding. However without being able to generate a sizeable income the likelihood they will be able to build their own network is a distant prospect.
It was only recently that T-Mobile took action against Truphone illustrating VoIP operators’ vulnerability. In this instance the courts took action to prevent T-Mobile from blocking calls to numbers which had been attributed to Truphone which perhaps can be interpreted as a glimmer of hope for the future of flexing of the muscles of Hutchison Wampoa, which owns the 3 networks has been more successful, effectively removing the possibility of widely available Wi-Fi, arguably signalling the end for Skype.
How things will develop remains to be seen but it certainly doesn’t look like the long established operators have had their day just yet.