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Wireless broadband phone calls begin to rise

December 12, 2005 11:05 AM EST | Wireless | Email to Friend | Comments (0)

As a result of the current boom in cheap broadband products, it has been predicted that up to one-third of people in the US and Europe will abandon traditional phone lines in favour of Wireless Broadband telephony by 2010.

Wireless broadband telephony is becoming increasingly popular among consumers as people become more confident with their use of high-speed internet connections. It is now apparent that Cheap Broadband products offer a cheap alternative to fixed-line voice phone calls.

In fact, more and more people are abandoning their fixed-line home telephone products as they realize that they are doubling up on expenses by having both broadband internet and a fixed-line phone product running simultaneously.

By 2010 it is widely predicted that over 75% of voice connections around the world will be wireless. This is due to a combination of factors such as avoiding doubling up of expenses, falling mobile phone costs, and the expansion of such products into the emerging economies of China and India. These two countries alone account for a population of over 2 billion people, or one-third of the entire population of the world.

Skype, which provides software for broadband telephony via the PC, has so far proved popular with consumers, but it is predicted that mobile telephones will eventually win out. This is because Skype requires a computer and a headset and it is more likely that wireless telephone services such will be what eventually catch on. A lot of people have downloaded Skype, but not many are actually using it.

The growing popularity of broadband telephony is not good for traditional telephone companies unless they are willing to embrace new technology and profit from it. Most appear to be embracing the technology and will therefore benefit from it, however prices for mobile telephones are much lower than for traditional fixed-line telephony meaning it will not be a major source of ongoing revenue in the same way as fixed-line telephone services have been in the past.

There will be more than three billion mobile telephone subscribers throughout the world by 2010. It is vital that telcos put wireless technology at the top of their agenda if they are to be successful in the future or face the consequences of falling behind the trend. To put it bluntly, telcos will need to have a clear wireless strategy or they will perish.

As a result, many fixed line operators are currently integrating wireless with their traditional phone services, effectively packaging the services together. They are then marketing them to consumers with the convenience of having one device and one bill for both mobile and fixed line calls. But if mobile phone pricing continues to fall, this might not be enough to convince people that they still need a phone line in their home.

There is already a small but emerging trend for people to use only their mobile wireless technology in their home, and do away with a fixed phone line altogether.

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