Blocking VoIP on Mobile

Is blocking VoIP over mobile a feasible business strategy? On the one hand, VoIP threatens to undermine the voice revenues of mobile networks, and they have legitimate business reasons to protect their investment. Hence why Vodafone blocks VoIP. On the other hand, there are plenty of businesses that would gain from opening up networks to VoIP, which is why Skype will use any pro-competition statute to try to force liberalisation. But the issue really comes down to whether customers care enough to want VoIP, and are willing to change to a network that supports services like Skype. Some will, some won’t. But assuming people who start to use VoIP never want to go back to a service without it, consumer pressure will eventually force networks to open up to be competitive. The only judgment call is the tipping point: when blocking VoIP to increase revenues is worth less than the loss of customers to rival networks.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.