Summary
The mobile VoIP application by Google for Android and Blackberry is big welcome move that add significance to the efforts already initiated by players like “Jajah” and "skpe" on mobile and "RelianceiCall" on desktop. Now what will be noteworthy shall be how Google address the issues and respond to the actions from the operators, handset vendors, software vendor, regulators and markets around the world.
Analysis
It is natural for the VoIP to go out from the desktop environment into the mobile handset environment which will result in the many fold increase its addressable market. The current handset enabled are high end smart phones like Android and blackberry and possibly soon iphone but such smart phones sales only constitute less than 30% globally and rest are in the mid or economy range (e.g. in India more than 60% phone sold are entry level and below $65) bought by people who are most cost conscious and price driven. As and when these major players launch mobile VoIP applications for low end phones then I see boom in the mVoIP usage.
Similarly, other players like Nokia, Samsung, Sony Ericsson and LG also constitute more than 75% market share of handset sales in many markets, Google may like to look at reasonably addressing this market also. With initiatives like open mobile alliance (OMA) complied by most handset vendors, getting access to dialer and address / contact list shall not be as cumbersome as once was.
Now how would Google respond to handset vendor efforts (differentiation or integration with Ovi by Nokia, Samsung Club by Samsung etc.), barriers by vendor (barring of similar application on the windows mobile), barriers by operators (extra charges or not allowing in view of potential loss to its existing voice business) and regulations (ban on mVoIP in certain countries) will be interesting to watch and can go a long way in promoting the nascent mVoIP.
Similarly, the margin on calls are so less (presumably in / between countries where Google voice will launch its service with local number e.g. most have low call rate or fixed monthly charges) so what economy can a person derive by the making extra efforts through Google Voice is yet to be proven. In addition, how quickly can Google expand its service on local number to numerous countries across the Globe will also make a huge difference in terms of making this service economically (e.g ISD call charges) viable and attractive to the end user.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
