When Qualcomm last week announced it was bringing voice-over-IP
(VoIP) service to CDMA customers, the news was the latest milestone
in a technology set to turn upside down the entire wireless industry.
If the analog telephone rang in a new way of person-to-person
communications and cell phones marked the age of mobile talk, VoIP
ushers in digital, Internet-based global wireless telephony.
Until recently, VoIP meant using a Web-based service requiring you
be tied to a desktop computer and suffer inferior quality audio with
little application beyond the home consumer. Today, every major
wireless carrier is involved in VoIP projects, quality has improved
and most importantly corporations have become interested — very
interested — in VoIP.
The basic difference between traditional analog telephone calls
and calls made with VoIP is the way your voice is transmitted. When
you call a friend in New York, a dedicated circuit is reserved for
your conversation. With VoIP, your voice is cut into multiple
packets, takes the most efficient path along the Internet and is then
reassembled when it reaches your friend. Analysts predict within five
years, 75 percent of voice calls will use VoIP.
For wireless VoIP to work requires either packet-based 2.5G or 3G
networks, which is what Qualcomm’s QChat technology will use. The
other option is 802.11 WLAN and is where the real excitement over
VoIP lies. Wireless market analysts at Frost & Sullivan say VoIP will
drive the WLAN market from $217 million in 2000 to $558 million by
2007. Why? Corporations see VoIP recouping the costs spent
integrating WLANs into business networks.
Where are the cost savings? A company can save the up to $300 or
so it costs to install a new extension. VoIP are the ultimate in
plug-and-play. Another advantage businesses see is the ability to
combine their voice and data networks, according to Frost & Sullivan.
The prime advantage is the ability for a remote worker to enter
his three-digit extension, pass through the office PBX and have
immediate contact with his co-workers. No downed lines, no busy
circuits, just a direct connection. Analysts see the uses for VoIP
expanding to almost every sector where instant communications is
required. How will this effect the wireless industry, which is
supposed to be the technology supplanting wired phones?
Although base stations made up nearly 98% of the wireless market
in 1998, Frost & Sullivan sees that market share falling to just 53%
by 2007 as VoIP takes 47% of the wireless enterprise market.
CellularLD is a service from Brookline, Mass.-based Moltium Ltd.,
which has been described as the “10-10-321 of wireless.” The service
allows cell phone users to “dial around” long-distance providers and
their wireless carriers to use VoIP, resulting in less expensive
calls. CellularLD is available in California, North Carolina, Nevada
and along the East Coast.
Another example of wireless VoIP in place is at the University of
Arkansas at Pine Bluff where faculty and students use SpectraLink’s
NetLink IP Phones over the campus 802.11b network.
Since 2000, Pocket PC users have been able to use BSquare’s bInTouch
software to hold real time VoIP conversation with sound quality
comparable to a mobile phone, according to the company.
Also, Nokia and BT tested VoIP in the UK during 2001.
Frost & Sullivan said along with a cost difference between VoIP and
traditional phone service, packet-based calling remains below the
public radar. The latter factor is certain to change.
