Google enters the fixed-line telecoms market
Does Google’s shift into the VoIP market put other providers under threat?
VoIP providers ‘could benefit’ from Google fixed-line services
Google’s decision to enter the fixed-line telecoms market could have positive implications for other voice over internet protocol (VoIP) providers, an expert has highlighted. Steve Hilton, principal analyst at Analysys Mason, said Google will do all it can to ensure the platform is as widely used as the traditional telegraph pole.
“They have a huge interest in switching usage to mobile devices, especially Android powered devices and other computing devices,” he continued. Mr Hilton pointed out that there is little financial incentive for the search giant getting people to take up its VoIP services, but other providers may well reap the benefits.
The expert stressed: “I think Skype benefits by Google continuing to shift the emphasis away from the old-fashioned telephone toward voice over other devices.” It is likely that existing Skype users will try out the Google application and possibly even encourage younger generations to replace the telephone services they receive from their local telephone companies.
Analysis from Frost & Sullivan recently predicted that the VoIP market will improve on its 40.1 per cent growth in user base and 22.3 per cent growth in revenues seen in 2009. It noted that users prefer IP-based technologies, such as session initiation protocol trunking, to save costs by converging voice and data access lines and reducing long-distance call costs.
“Service providers are investing in enhancing their VoIP access/trunking services in terms of survivability, redundancy, and trunk pooling to be able to offer greater value,” noted Frost & Sullivan director Elka Popova. She revealed that customer attitudes towards VoIP technology are also likely to shift over the coming months and years, particularly as they look to make use of “pure IP telephony equipment”.
With Google entering into the VoIP market, and predictions suggesting it is likely to grow, now could well be the time for advertisers to capitalise on the sector.
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Tuesday, August 31 2010 by Catherine Ferguson
Source: Analysys Mason
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