When will VoIP reach mainstream adoption in the Australian market?

Many global vendors have been rubbing their hands at the prospect of extended
VoIP deployment.

Personal IP communications is the future of real-time communications for the individual user, according to IDC.

This market segment is categorised into three areas including web-based services, portals, and mobile thin-clients.

Together, IDC forecasts these categories will represent more than US$5 billion in annual spending in 2012.

At the forefront of the evolution of “voice as an application” are new web services platforms from vendors such as REBTEL or iotum.

Voice is becoming embedded in sites, applications, and other services, sometimes by third- party developers, but also by the original provider.

Web-based personal IP communication comes in many shapes and sizes, ranging from widgets and applications for social networking sites, to websites that initiate the bridging of calls.

IP communication clients for devices, such as Truphone and TalkPlus, are integral to the growth of personal IP communication services.

While some web-based services offer a mobile solution via bridging capabilities over the cellular network, many thin-client services look to provide an end-to-end VoIP experience via the data network.

The proliferation of a new category of devices known as MIDs will be dependent on these IP communications clients’ voice communications.

Standalone IP communication portals, such as Skype and SightSpeed, have become a viable business.

Calls between users on a platform are usually free no matter what the revenue structure. Some portals price calls on a per-minute basis depending on where the call terminates, while others offer a monthly subscription for unlimited minutes.

Similarly, there are portals that rely 100 percent on user-generated revenue and others that rely on a mix of ad-generated revenue and user-generated revenue.

“Funding models to support personal IP communications still remain in flux. Some services are already being offered for free, looking towards advertising to generate revenue. Other players are offering a free basic service and the option of a premium service for a monthly fee,” said Rebecca Swensen, research analyst for VoIP Services at IDC. “Still, it is questionable whether either of these revenue models will be profitable.

Will one model become the de facto standard in the next few years or will there continue to be varying revenue models?”

This week we ask our experts:

“When can we expect VoIP deployment to become more mainstream here
in Australia?”

Paul Scanlan
General manager, IPL Communications

VoIP trunks are ready to be launched and re-launched by the large carriers this year, which should help to change the perception of VoIP as a niche carriage product and further validate it in the eyes of business.

End-user knowledge of VoIP is growing fast, with consumer use of services such as Skype on the increase.

Once the carriers start to drive VoIP trunking, most likely by highlighting the system’s significant cost savings over conventional carriage, the adoption of VoIP-enabled IP-based systems in Australian organisations will escalate.

In recent years, IPL has noticed a marked increase in the number of IP-based systems being deployed, with 50 percent of systems sold today being IP-enabled, compared with 10 percent just two years ago.

VoIP’s most significant feature is its capability for remote IP extensions, which means handsets can be added outside the network without the need for a new switch in each location – mobile phone handsets can also operate as extensions to a PBX that is able to seamlessly handover from GSM to WiFi using VoIP.

The convenience of having one central system running all of the remote end-points will prove attractive to businesses from SMB to enterprise – as will the associated cost savings.

The potential benefits a VoIP deployment can have to a business’s bottom line will continue to make more companies consider it as a serious option.

IPL expects that by 2009 VoIP deployment will have become mainstream in Australia.

IPL is gearing up for this with our services division seeking CCNA and vendor-specific qualifications across the board, and by actively driving the technology transition towards soft switches.

Pushkar Taneja
Managing director, GlobalConnect

At a fundamental level, IP telephony deployment will help organisations realise reductions in cost, increase customer satisfaction and gain greater productivity from the workforce.

These are the basic reasons most organisations are upgrading their existing network to IP telephony.

From the core benefits gained from an IP telephony upgrade, the network evolves to add more sophisticated security and mobility and an increase of bandwidth for applications such as video.

Mobility solutions enhance productivity by making information and applications more readily available to employees whereever they’re located.

An example is Office Communicator – a fully integrated conferencing collaboration solution – making it possible to choose the location you conference to – home, office, mobile or remote line.

In VoIP’s early days the industry was excited about the endless potential for opportunities within organisations for efficiency.

Imagine a new technology that reduces telecoms costs, provides greater opportunity to increase customer satisfaction and makes it easier for people to communicate without being in the same office.

You could plug in a VoIP solution and see the benefits immediately.

The concept was a little oversimplified for those early adopters and the industry’s appreciation of the network requirements was also underestimated. With VoIP’s maturity has come a greater understanding of deploying and maintaining a solution, to completely experience the benefits.

The real value a good systems integrator offers is this intimate understanding of VoIP and an individualised migration strategy, over months and years, utilising best of breed vendors.