Voice over Internet Protocol (VoIP) offers proven quality under the right conditions (managed access makes a big difference). It is extremely cost-effective to run and comes with rich unified communications possibilities.

 

So why aren’t we making VoIP calls all the time?

 

It turns out there’s something the operators aren’t telling you: They’re already benefiting from VoIP in their core and transmission networks. They’re just not passing the benefit on to you, because this will eventually kill their established businesses models.

 

Global operators’ VoIP strategy

For two decades, global operators have battled price declines due to market liberalisation, diminishing revenue growth and IP-based competition.

 

Research firm Telegeography further reports that total global voice traffic grew by just 5% in 2012, with traditional TDM-based voice growing less than 3%, making up 66% of total minutes, and VoIP, growing more than 25%, making up the balance.

 

The wholesale market¹ seems to have peaked. Since 2008, carrier-to-carrier traffic grew by 30%, but revenues have languished at $13.2 billion ever since. Retail volume growth and price declines have likewise reached a delicate balance, and revenues may soon fall.

 

Clearly, the industry is in trouble. In a zero-sum game where revenue growth no longer makes up for losses, incumbents are only just surviving with strategies that vary from consolidation deals to shedding low-margin business interests to, tellingly, implementing zero-rated VoIP. “Some carriers are far along in their transition to all-IP networks,” the report notes.

 

This being the case, why aren’t they passing down the benefits to customers? Quite simply, it is because IP will undercut the cost of operating an already crippled business model. Operators are treading water and doing everything in their power to maximise cash flow. New-world models are not in their interest.

 

Local picture

Locally, telcos are equally schizophrenic. On 28 August 2013, ITWeb reported that fixed-line operator Telkom had switched on its all-new IP multimedia Subsystem (IMS) core network, as it migrates to its next-generation network. This follows a June announcement that it had cut over 240 multi-service access nodes.

 

The website reports that Telkom plans to spend more than R10 billion in the next two years on rolling out the all-IP network.

The mobile networks operators, too, have implemented IP at the core

 

Will this lead to IP-based retail offerings, as it should?

 

Recent indications are that Telkom and the MNOs are in no hurry to do so. Packages have been announced whereby they will offer cut-rate calls to one another’s subscribers, which is essentially a billing arrangement and an avoidance of the issue altogether. It is within their power to extend a properly managed IP offering to customers, which would spread the cost savings far wider and not contain them within a captive client base, but they’re not doing it.

 

Again the question must be asked – why not? And again the answer is that it will hasten the crisis that operators find themselves in.

 

Makes no sense

Worldwide, a billion people use MVoIP. It should be several billions more, but resistance from industry players (and market makers) with vested interests is keeping this from happening.

 

Operators are continuing with any number of defensive strategies rather than taking us into a new deal of unfettered, cost-effective communication. And while this serves to artificially prop up their businesses, it makes no market sense whatsoever.

 

¹ International carriers commit to sending each other a certain amount of traffic for price breaks. If the volume traffic is either too low to justify the amount Carrier A is entitled to pay Carrier B in termination charges under the deal, or too high, incurring overflow charges, A must either obtain extra traffic to make up the shortfall, or send its excess traffic via routes that bypass international charges. This trade in traffic is known as the wholesale or carrier-to-carrier market. IPT is the bearer technology of choice, offered in deregulated markets, because it carries no toll charge.

Voice over Internet Protocol (VoIP) offers proven quality under the right conditions (managed access makes a big difference). It is extremely cost-effective to run and comes with rich unified communications possibilities.

 

So why aren’t we making VoIP calls all the time?

Communications technology has made astounding advances over time, and yet has not been allowed to deliver on its promise of bringing information to areas where it has the most potential for change and progress.

Networked-based communications – or Voice over IP (VoIP) – is responsible for a radical overhaul of the role of the business PBX. Previously a mere utility that switched voice calls, today’s IP-PBX offers unprecedented efficiencies, flexibility and functional variety.

 

A constantly expanding universe of communication functions, each suited to a niche requirement that another mode of communication cannot fulfil as well, shows just how diverse and nuanced modern communication is.

 

The mobile phone as a key enabler of the corporate network is a long-standing vision that has become ever more manifest thanks to the acceptance of IP as the bedrock of communications technology. Other signs include the maturation of Wi-Fi as a seamless bearer technology acting in concert with cellular GSM and 3G. The computing power of smartphone technology further demands that mobility be given its rightful place in the enterprise, and myriad applications hasten the completion of that journey. Finally, PBX technology has developed sufficiently to manage mobile phones as part of the corporate communications ecosystem.

 

Soon, industry alliances will coalesce between mobile and converged telcos, offering bespoke FMC benefits that do justice to this confluence of factors – for example opening up least-cost routing and zero-rated options not available before, as well as entire new functional communications vistas.

 

Videoconferencing is acknowledged as a supremely enabling tool, but not many businesses have even considered it, for reasons of its cost. New platforms have however become available that make this technology available to even the most modest sole proprietor. With hosted IP-based video, any business or contractor can now rent virtual videoconferencing rooms at very affordable monthly rates, allowing them to rope in specialists at short notice rather than schedule meetings with multiple people inside and outside the organisation at much cost, delay and inconvenience.

 

Another way in which IP communication has changed the way we do business is instant messaging. IM proves that, while email and voice conversations need never die, they aren’t suited to scenarios where immediacy is vital and a degree of non-disruptive intrusion is palatable.

 

New applications for IM are becoming evident as customers demand a direct interface into the business.  Given a choice, many people would find chat a better option than a voice conversation, especially when busy, or on weekends and public holidays, when it seems an enormous effort to pick up the phone and talk to a support engineer. Chat does not require diverting your attention from your PC, where (let’s face it) it is probably focused. And unlike a voice conversation, it is easier to terminate a chat exchange with the minimum of protocol observed.

 

Chat gives companies the opportunity to delay their response in lower-service level situations, whereas this would lead to a pregnant pause in a live voice chat. But in situations where a higher service level is required, the Jabber protocol (XMMP) can offer a customer service similar to voice IVR systems, which allows businesses to queue their incoming chat overflow and give an estimated waiting time. In turn, this allows the customer to go on doing other small tasks while waiting.

 

IP is a change-enabling architecture for businesses, opening up a world with fewer constraints, more subtle communication nuances, more speed, less complexity and lower cost.

 

And it’s for everyone.

What you need to know

 

There have been rapid advancements in technology over the past few years with constant new developments. We have seen the launch of Apple’s smart TV, Microsoft’s Windows 8, the Blackberry 10, Samsung Galaxy S4 and a myriad of quirky digital apps. Social networking continues to grow exponentially with Facebook hitting 1.11 billion users globally at the end of March 2013 and Twitter at over 550 million users by the end of May 2013. With so much happening in the tech environment, it can be difficult to stay up-to-date. 

 

Head of Products at MWEB, Rihana Hoosain, provides a review of today’s tech advancements and outlines what’s important to know.

 

Smartphones

The fall in smartphone prices has boosted sales and expanded their user profile. According to the 2013 edition of the TomiAhonen Almanac, this year will hold two milestones - the count of mobile handsets will match the count of the human population alive on the planet, as well as reaching the point where half of all new phones sold will be smartphones.

 

The mobile market is increasingly competitive; which is a huge innovation driver for manufacturers. Earlier this year, an Internet Trends report shows that Android smartphone adoption is increasing rapidly, and is now nearly six times higher than iPhone adoption. The constant competition amongst players like Samsung, Apple, Blackberry and HTC mean better prices with more value added services included for the consumer. According to Gustav Fachs, Mobility Director, Microsoft Middle East & Africa, Microsoft aims to become the number 1 smartphone provider in South Africa by 2016.

 

With the launch of the Samsung Galaxy S4 this year, there has been more talk around Near Field Communication (NFC). This Wi-Fi short range technology enables you to transfer data between two devices, meaning you can simply connect your smartphone to a payment terminal and it will pick up your account details and make the payment from your phone. Depending on how much information you want to give the device access to, the NFC chip could prove to be very convenient as your phone becomes your very own e-wallet.

 

Mobile apps

Mobile app stores are emerging rapidly, with more apps continuing to advance and shape the way we consume media. A report from Analytics Firm Distimo reveals that the most downloaded Apps from the Apple Inc App Store are games, whilst Google Inc’s Google Play store is more popular for utility apps such as Google maps and free messaging service WhatsApp. Download the right apps for your needs, and it can make life a little more convenient.

 

Tablets

The International Data Corporation (IDC) increased its 2013 forecast for the worldwide tablet market to 190.9 million from its previous forecast of 172.4 million units.  Indicating an extreme shift in computing, tablets have changed the way we consume and share media, enabling on-the go convenience and 24/7 connectivity. This high level of mobility empowers businesses to revolutionise the way they communicate and instigate customer engagement with their product offerings.

 

So how do you know which is the best tablet for you?  This all depends on your needs. The Apple iPad is user-friendly as it is all about simplicity with fewer hardware extras. Android tablets offer more advanced tech features with additional hardware options such as HDMI ports that enable you to connect to a TV. Important to consider, is the amount of memory you will need, which will influence the number of apps you can store. Most tablets offer a 16GB memory that is sufficient for the general user.  If you want a tablet that has the simplicity of an Apple iPad, but runs on Android, the Samsung Galaxy 10.1 is a good start. If it’s the latest buzz you’re after, the Google Nexus 7 has been very well received as one of the more popular Android Tablets this year.

 

E-Reading

Following the launch of the Kindle in 2007, the market for e-reading has gained huge momentum. Research has revealed that many people prefer e-reading to reading paperback or hardcover books simply for the convenience it provides. Online bookstores also offer consumers a wide selection of available books at affordable prices without any check-out queues.

 

The e-reading market has become a competitive one. In South Africa, the Kobo, made by Japanese Company Rakuten, launched last year as a more affordable option to Amazons highly regarded Kindle.  Although the Kobo wins in price, the new Kindle Paperwhite, hailed as the world’s most advanced e-reader, with higher definition, higher contrast touchscreen with built in light and 8 weeks battery life, is enjoying great demand.

 

Exclusive e-readers themselves are, however, in some danger as the tablet market produces smaller, more affordable models that offer e-reading apps along with all their other uses.

 

Social networking

It’s no secret that social networking is growing.  What’s interesting to see is the growth in the use of Pinterest, which focuses on high quality visuals that users share to their personal “pin boards”. In February 2013, Reuters and ComScore stated that Pinterest had 48.7 million users. In addition to this, video social networking has risen as the latest medium to create and share videos online, with new additions such as Twitter’s Vine but YouTube remains the most popular for now.

 

Social networking is now focusing on more ways to share content across platforms and continues to replace traditional news sources for information gathering. We are seeing many brands jumping on board with new social networking accounts being opened every day. Consumers are endorsing brands by using their personal social platforms to recommend preferred products to their friend base. Businesses are using social media to create engagement with their clients and provide and receive real-time feedback.

 

Telecoms

Cutting spending on voice communication is a key focus for most consumers and small businesses. VoIP (Voice over Internet Protocol), which has been used by call centres and larger companies in South Africa for a while, uses your standard Internet connection and enables you to make cheaper calls over the Internet. This innovative technology is fast on the rise and being introduced into a lot of small or start-up businesses as a substitute for standard telephone usage. There are even VoIP apps available on some smart phones. 

 

Final Word

Most of these technologies require access to reliable, affordable,high speed data services and ISP’s continue to develop and provide solutions to meet these needs. In the past few years South Africans have gained access to uncapped Internet, VDSL (Very-High-Bit-Rate Digital Subscriber Line), reliable Wi-Fi, and 4G (4^th Generation)/ LTE (Long Term Evolution) Networks.

 

Be sure to look into all available Internet options available to you through established, reliable providers, in order to maximise your use and enjoyment of these and upcoming tech advancements.

 

For more information on MWEB’s products visit www.mweb.co.za or like their Facebook page at .

Open source software (OSS) has come a long way since the 1990s and early 2000s, when it was considered a risky investment for enterprises.