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4G will kill the voice phone market

Analyst warns of doom
Wed Aug 25 2010, 11:13

THE INTRODUCTION of 4G mobile telephones will kill revenue from traditional voice calls, an analyst has warned.

Bennelong SGI portfolio manager Scott Klimo said the increased network capacity would justify free phone calls killing the golden goose of mobile voice revenue.

In a research paper, Klimo wrote that 4G, by providing more capacity for data connections, will provide vastly more capacity than will ever be required for voice communications.

Fourth generation mobile long term evolution (LTE) will enable all calls to be carried over the Internet, but they will be billed as data rather than voice minutes.

Klimo's claims have been backed by fellow beancounter at Ovum, Nicole McCormick who told the Aussie newspaper The Age that in a 4G world, data pricing is perhaps going to be more crucial than today because voice is going to be practically given away for free.

Everyone is watching what Japanese carrier NTT Docomo does when it releases its first 4G network packages at the end of the year, she said.

While increasing data use on smartphones would initially offset the decline in voice revenue, carriers had kept data pricing high to avoid undermining their mobile revenue, she said.

Klimo said it is going to be hard for former monopoly carriers to adjust to lower margins. µ

 

 

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Comments
Anyone want to start a business with me,

Since probably the phone companies will ban voice-over-IP communication...

Here's what we do: when you want to make a phone call, our software speech-recognises what you say, and texts it tu the intended recipient. At that end, text-to-speech recreates an audible version using the sound of your voice.

Or for the premium price, the sound of a celebrity's voice. Ladies! Have the man in your life sound like George Clooney. Men! Have your special lady sound like Jessica Rabbit.

Or pay -discount- price and you get Elmer Fudd and Bugs Bunny. What ever turns you on.

posted by : Robert Carnegie, 26 August 2010 Complain about this comment
yup thats right - voice is just expensive data

sigh. voice has been data all along.

From the first day a modem was created that could send arbitrary data over a telecom line, that was the beginning of the end. This is just the natural progression. Expect a huge fight.

posted by : neko, 26 August 2010 Complain about this comment
4G Has Been Sitting Around for Years

4G was finishing testing when they were still trying to negotiate deals to buy the first 3G equipment. 4G could have easily shipped when 3G did. It would have been a wise move for the phone companies, who are perfectly capable of pricing services based on demand and perceived value instead of actual cost (see texting prices for proof). However the few network providers had too many ties to equipment manufacturers, who would have lost a lot of money on 3G if no one bought it.

Welcome to corporatist America, where you're free as long as you can always get government permission. I'm sure they'll find ways to track phone minutes separately from data and rip you off, I mean bill you accordingly.

posted by : Name Changed for My Protection, 25 August 2010 Complain about this comment
Voice Quality at present is pathetic

Voice Quality of current 3G mobiles/networks is pathetic compared to landlines and voice dropouts frequent on any uk mobile network. Perhaps operators can allocate more bandwidth and QOS to voice traffic on 4G.
Also it is waste of limited natural resource(bandwitdh) to remain on 2G and 3G.Earlier we move to 4G, more effiently we can use the spectrum. Seeing how long it has taken to move to 3G in UK, it does not seem the move to 4G will happen anytime soon.

posted by : Sam, 25 August 2010 Complain about this comment
No, latency will kill the 4G market

They said the same for 3G.Unless they give it user functional QoS and reduce their already stinking latency then 4G will be just as uselesss for voice as 3G, which already has more than enough bandwidth to carry voice.

posted by : tentimes, 25 August 2010 Complain about this comment
uh ?

seriously,
wtf?

So 4G - you have an iphone / android - are already PAYING for FREE/INCLUDED MINUTES every month. (that now you won't use) < aha they figured that in didn't they.

So you have a choice of using your free minutes or chewing into your very very very unLIMITED cap. and then paying premium when you go over.
hmmmm
hmmmmmmmmm

how much do these guys get paid anyway?

"oh the poor defenseless operators, won't be able to rob people blind because our industry is now monitored"

posted by : bofh80, 25 August 2010 Complain about this comment
data is plenty expensive

I'm sure that business models have already taken that into account. Tiered data plans, etc.

posted by : mike, 25 August 2010 Complain about this comment
aboutus
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