Press Release:
Mobile Voice Over WLAN: A Win-Win Solution for Service Providers and the Enterprise
Press Release
News Article March 2005
VoIP over WLAN will offer cost savings for service providers and mobile end-users alike. First to adopt mobile voice over wireless local area network (VoWLAN) will be the enterprise customers. According to an enterprise survey by Sonera, the major barriers for enterprise migration are concerns about the voice quality and the fear of rising costs. If mobile providers can address these concerns, the move towards VoWLAN on enterprise networks will be just a matter of time.
The business case for VoWLAN is clear and it promises to increase cellular usage as well. First, WLAN networks can complement mobile networks by providing indoor coverage, which cellular networks cannot always deliver. Second, the high cost of the mobile private branch exchange (PBX) on the enterprise premise is a deterrent for migrating all enterprise voice services to mobile. Finally, VoWLAN is the next step for enterprises that already maintain WLAN hot spots, such as hotels, cafes, hospitals and warehouses. Converting to VoWLAN will deliver efficiencies by eliminating the need to maintain multiple networks.
The migration of enterprise voice to WLAN networks will have a profound impact:
• Currently, discussions around VoWLAN are led by the fear of cellular usage and revenue cannibalization. This is a valid concern, and indeed some of the existing cellular traffic will be lost. However, moving voice to WLAN will lead to overall growth in cellular traffic, which will replace current fixed line usage and create higher overall revenue levels.
• Even stronger is the argument that mobile operators simply cannot afford to adopt a wait-and-see approach for long. A lot of work on VoWLAN has already been done by fixed line providers, for whom the loss of enterprise traffic is very real. If mobile operators do not get into VoWLAN soon, then fixed providers will.
For more cutting analysis from Pyramid, see The Future of Mobile Voice: Operator Strategies and Moving Mobile Voice to IP
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