Many mobile operators see VoIP services as a threat not an opportunity. Jon Doyle says that service providers can build packages for small and medium business users that will aid retention and build revenue 
 
 
 



Jon Doyle: mobile VoIP helps people stay with the brand
rather than use services such as Skype


 
 
 
 
 
Operators across the world are facing a challenge from voice over IP providers such as Skype that are eating into their most lucrative revenue. The first to feel the effects were fixed-line broadband operators — but the arrival of wireless broadband means now mobile operators are having to consider their strategy too.
What should they do about it? Jon Doyle, vice president of CommuniGate Systems, has what at first sight is a bold suggestion for mobile operators: embrace the challenge of VoIP and offer it to customers as part of the package.
“Mobile VoIP helps people stay in the brand,” says Doyle. In the end they will remain as loyal customers, and keep using the mobile operator for data services.
The focus is on mobile VoIP simply because young customers are dropping fixed-line services and turning to mobile broadband, he says. “Most people in their 20s don’t buy fixed line any more. They just use mobile.” Operators throughout the world are losing fixed-line subscriptions but adding mobile customers.
But VoIP over mobile is starting to threaten mobile operators’ revenue in some parts of the world.
“Two of the largest markets, the US and western Europe, are quite different,” says Doyle. In the US, most mobile plans offer nationwide calling; and only a minority of people make international calls in the US — and those who do are being attracted to independent providers such as Skype.
In Europe and many other parts of the world, operators rely on calls to other countries and international roaming fees for a substantial part of their income. “That revenue is being attacked more and more by Skype.”
Faced with this drift away of lucrative subscribers, operators should recognise the opportunity of providing VoIP alternatives under their own brand, he says.
“In the US, Verizon Wireless has started to work with Skype, and it has found that those customers consume more data and more paid-for minutes. They are the sort of people who use international calls.” They care about convenience and price — so don’t let them get away, he adds.
What to do? “There should be an ‘international roaming’ button on the phone,” he suggests. “It would give mobile VoIP services branded to the operator. Making the service directly accessible from the handset would keep customers loyal.”
CommuniGate Systems can help, Doyle explains. “We provide a platform that will provide mobile VoIP on handsets, whether they are iPhones, Androids or other systems.”
More than that, though, the platform can provide significantly added value — a single identity that can be used on fixed-line phones and softphones on desktop and laptop PCs as well as mobile phones. “This one identity spreads across all services, and you can even control different devices.”
It means calls to the mobile number can be routed selectively to these devices. “You can control the calls via an SMS,” says Doyle. “If you have to go out to a meeting, you can send a text to route all your calls to your mobile, or divert them back to the office.”
But other systems can do this via web-based control panels, surely? “Yes,” agrees Doyle, “but normally when you need to control your calls you don’t want web access, but we of course have web and application control panels for rules too.” And the platform is capable of high-definition voice.
Top customers for these mobile VoIP-based services are small businesses that are fast-moving and want the features before they’re available for giant multinationals — and want them on iPhones and other devices which are popular with small and medium business but have yet to be accepted in large numbers by giant corporate IT departments.
“CommuniGate Systems supplies the software and the operator is a partner of ours. We give them the technology and the consulting, and help with the data centres, so they can provide this white-labelled service under their own brand. The end user will never know about CommuniGate Systems,” he smiles.
For the mobile operator, “it is for sure a retention policy”, he adds. Provide the business user with a single mobile number which works on a number of devices, and the user is more likely to stay with you. “More and more operators are letting customers go to Skype and that’s just digging their own grave to a bit pipe,” he says. Provide an alternative and keep the business, he adds. GTB