Now the above headline could easily be a headline from one of Britain’s daily tabloids but it’s also the message I received listening to a mobile phone message recently. While it’s not hard to work out what the person said – it’s just illustrates what bad mobile phone voice quality we tolerate from Operators. So reading the latest headline from ABI Research that ‘ARPUs Continue to fall globally as mobile voice usage nears saturation.’ It seems evident that HD voice is a pretty good solution for these guys. Ex Squeeze me! Hello Haych Dee Voice.

According to ABI, Mobile end-user ARPUs dropped between 6 to 9 percent globally. While in India, the world’s second-largest market in terms of subscribers, saw ARPUs dropping more than 10 percent year-on-year in the same period, as new operators and the introduction of per-second billing put heavy downward pressure on voice revenues. In Europe the ARPU contraction was in the range of -5 to -8%, with Austria seeing a contraction of more than 9%.

I recently received an email from Dan Berninger who organizes the HD Communications summit – which GIPS has sponsored since its inception last year. Good news – having traveled to New York and Paris the event will now be held here in the Silicon Valley on May 12.

After AT&T’s announcement last fall that they would allow VoIP applications to use the 3G network very little has happened. No applications offering such services have actually been approved by Apple to be sold in the Apps Store. Until now, that is. Today our customer Toktumi announced that their latest upgrade of the Line2 application for iPhone has been approved by Apple. This application is touted by Toktumi as “the first iPhone calling app that works over 3G, Wi-Fi, and cellular networks using the same number”. This is pretty big news. The end user can get better call quality (HD Voice), improved coverage (through WiFi), and save a lot on call charges. VoIP applications have previously only been available on Symbian, Windows Mobile, and most recently Android devices, while maybe the most popular smartphone has lacked such support.

The Line2 application offers much more than just a standard VoIP application (As opposed to e.g. iCall, which is another VoIP application fro the iPhone). In fact, I use it on my Blackberry even though there is no VoIP support on that platform. This is because RIM hasn’t opened up the development environment in such a way that it is possible to develop a true VoIP application for the Blackberry environment. That topic is worth its own post so I will refrain from commenting more on this very frustrating issue…

We’ve had a busy few weeks here at GIPS. We had our fourth quarter earnings release, we announced our video survey of 1,200 business professionals throughout Asia and North America and we let the Apple application developer community know that our cadre of engineers has enabled the iPhone with video chat and video conferencing capabilities. Additionally GIPS will be exhibiting at Mobile World Congress next week to demonstrate both our HD voice capabilities and importantly video on mobile devices. Video and mobile have been more in demand from our customers in the last year and our business with customers in 2009 reflects this.

Mobile World Congress is the largest show in the industry with upwards of 50,000 people within the mobile communications industry attending. It’s also a place that a lot of business is concluded, new products are launched and where we see what is happening in the market on global and local levels.

While GIPS will be at the conference to learn we’ll also be demonstrating our technological strengths. Innovation comes from many small companies such as GIPS – perhaps technology that will present the industry with the type of innovation that will help drive business during the coming years.

GIPS will be at the show to make a difference and to demonstrate that you can truly see and hear the difference with GIPS. If you’re coming to the show you are more than welcome to stop by our stand in Hall 2. Hope to see you there.

Last week I wrote that, since the inception of Voice over IP, the arrival of December gives pundits the opportunity to proclaim the upcoming year as a break out year for mobile VoIP.  It seems my assessment wasn’t too far off. But despite my skepticism about how far reaching mobile VoIP will truly be, it has certainly seen a lot of activity this year.

The most recent example is Vonage’s announcement of an application for iPhone and Blackberry. The application’s most interesting feature is that it will be able to make VoIP calls over 3G for both devices. Until recently, the only way to make VoIP calls on a mobile device has been to do it over WiFi. However, by allowing VoIP calls over their data networks, mobile carriers appear to be getting more comfortable with the idea of users forgoing the cellular network to make free calls. This is obviously be something to watch for 2010, but it will be interesting if we start to see carriers restructure their plans by lowering their rates for voice minutes while raising the price of their data services to compensate for the change in demand.

And with that, everyone have a happy and safe New Year!

As a frequent consumer of pop culture criticism, I am well aware that it is almost 2010 thanks to all the “Best of 2009” (or now “Best of Decade”) lists. While sometimes predictable and cliché, I look forward to reading about the albums, books, movies and band names  that unite or divide critics. It’s a good way to discover music or movies that I had previously overlooked (this year’s winner: the Dirty Projectors) and it’s nice to take a look back at the year that was.

So, in that spirit, here are some of the most relevant stories in the telecom/VoIP/tech industry in 2009:

Net Neutrality Picks up Steam

With the new administration in Washington, the regulatory climate was noticeably different than the previous 8 years. The FCC began to look into possible monopolistic behavior in the mobile telecom market and the exclusive agreements between handset manufacturers and carriers. In addition, Congress offered proposals which would set actual rules around the regulation of the Internet. Major companies like Google, Apple and AT&T were all in the mix, and should be for the foreseeable future.

Android Offers iPhone Alternative

For all of us who were searching for a smartphone with iPhone-like functionality, but with a physical keyboard, a better network and an open platform, the Droid was the answer to our prayers. Perhaps that’s why Time Magazine named the Droid the “Device of the Year”. Subsequent news of a Google branded phone only fanned the competitive flames between Google and Apple.

Mobile VoIP Makes Waves

For years, pundits have been speculating about the arrival of mobile VoIP (I am sure at least blog or article in the next 14 days will proclaim that 2010 is the year). While I wouldn’t argue that mobile VoIP is here, or that it will soon be, it was a major component of the previous 2 storylines. One of the motivating factors behind the FCC looking into mobile operator behavior is carriers’ ability to block certain types of traffic (e.g. VoIP). In addition, Google Voice, while not technically a VoIP service, drew the ire of the FCC under allegations that it was blocking calls to rural areas. Also, the recent rumors surrounding the Google Phone indicate it may be an unlocked phone that will be sold without carrier subsidy, and configured to offer free VoIP calls. While mobile VoIP may not be mainstream, it sure is having an impact on the industry.

HD Voice Goes Mainstream

GIPS has been trumpeting the cause of wideband speech since the company’s inception. While the technology saw a great deal of adoption with the launch of PC-based calling services, it wasn’t until the marketing-friendly name “HD Voice” came along that it really took off. The number of companies announcing HD voice solutions, combined with industry organizations pushing for adoption of the technology, point to a potential for mass acceptance of a new standard of voice quality.

This week in the US – AT&T rankled industry reporters, bloggers and their customers. Not only is their customer satisfaction at an all time low – but now the company announced it will “incentivize” customers to use less data. If the statement is taken out of the spinner I think one can safely read: AT&T will punish customers who use too much data – Apparently about 3 percent of their smartphone customers are using 40 percent of data traffic. However, no model has been proposed so it’s ambiguous as to whether moderate users will also get hit badly by a tiered-pricing model. ..

Even with mobile tempers flaring here – I received a report from Frost & Sullivan that indicates mobile phone subscribers will continue to grow and actually cross the 50 percent barrier globally sometime in 2013.

It’s an extremely significant barrier especially when one considers that mobile phone adoption began in the 1980s and nearly seven billion people will populate the planet by 2014. So, 3.5 billion people will be using mobile phones to talk, text, tweet, IM, pay, play, socialize, film, record, video chat even watch TV

I wonder if landlines, which have been in existence since the end of the 19^th century, ever passed the 50 percent mark globally (answers on a postcard if you know the answer) when you consider large parts of the world such as Africa and Asia that traditionally had very few landlines?

While telephone quality has changed little over the last century – the opportunities for dramatic improvement in voice quality with HD voice is something to get mobilized about.

It seems that the slow holiday news cycle in the US has lead to media speculation. No, I am not talking about the Tiger Woods accident. I am referring to the industry publications that are abuzz over a rumored VoIP phone from Google.

While it seems plausible that we will see a Google branded phone in the next year, I have yet to hear a convincing business argument for why this would be a good idea, let alone why a VoIP phone would work in the current carrier-handset paradigm. As I wrote last week, I think Google is pursuing a very intelligent strategy by having an open OS that is available on a number of devices and networks. That strategy would seem to be jeopardized if Google followed an Apple-esque model of bundling hardware and software. In addition, carriers have shown absolutely no willingness to allow VoIP traffic on their networks, and I would imagine would be unlikely to subsidize a VoIP device from Google. The only way I could see this working is if Google sells the phone on its own, and users could go to a carrier to get a data plan, while using the phone for voice calls over WiFi. I am not sure how many people would line up for such a device, as anyone enticed by the proposition of cheap monthly phone bills would likely be turned off by the high upfront cost of an unsubsidized phone.

The rumors may in fact be true, but until someone presents a compelling reason why Google would launch a VoIP phone (or better yet, a reliable source willing to confirm said rumors!), I will continue to treat them as such.

I saw an interesting presentation this week that claimed mobile Internet usage is and will be bigger than most think. That’s quite a bold statement for an analyst to make – but in general analysts don’t make wild assumptions and Mary Meeker is no exception.

“Apple iPhone users account for 65 percent of data usage, but only 11 percent of the total mobile market share in the U.S.”

Earlier this week, Meeker gave a presentation to an audience in San Francisco at the Web 2.0 summit. She talked about both the economy and Internet trends. (Here’s a slide below that illustrates the adoption rate of a number of devices/applications.)

While it’s only one indicator early results show that the mobile Internet has accelerated far faster than any of its predecessors.  Commenting on the general economy Meeker said: “the leading indicators have turned the corner, but the lagging indicators are still weak.”

One of the fastest-growing sectors is the use of mobile data on smartphones devices such as the iPhone. Apple iPhone users account for 65 percent of data usage, but only 11 percent of the total mobile market share in the U.S.

AT&T, the exclusive provider of the iPhone in the US (at least for now) posted their Q3 results yesterday. They witnessed a 33.6 percent increase in wireless data revenues driven by growth in data plans and increased customer usage of Internet access, messaging and related services. While not as dramatic in growth terms AT&T did see an 18.7 percent growth in wireline IP data revenues – mostly driven by their U-verse expansion. Again, just an indicator from one company but certainly one the industry will be keeping their eyes peeled for, and an ear to the ground.

Yesterday AT&T announced it would open its 3G wireless network to Internet voice applications on the iPhone. Does this mean we are finally seeing an end on operators blocking certain 3G data traffic? I sure hope so. 

My belief is that if you pay for an unlimited data subscription, and hundreds of dollars for a smartphone, you should be allowed to use whatever application you want. 

Until now, operators have hypocritically argued that VoIP eats up too much bandwidth, possibly overloading data networks, while at the same time allowing bandwidth intensive web browsing, file downloads and  video streaming. It is obvious that operators’ resistance is more about lost revenue for voice traffic. But I find it amazing that mobile bit-pipe providers (read service providers) think they are special. I am paying them for their service and the traffic I generate, so why can’t I decide what to use it for? Would our ADSL providers dare to do the same? 

The success of the iPhone in the US market has been tremendous, and if users finally have the freedom to use any application they want, it could only mean the phone’s popularity will continue to grow. Specifically, if the iPhone retains special VoIP privileges, it could mean they keep other platforms, like Android at bay. For instance, today I read about a new Gartner report which projected Android’s market share to overtake the iPhone OS in 2012. The report states that,  ”while the Google-backed Android mobile operating system currently runs on less than 2% of all smartphones, Gartner Inc. predicts it will surge to 14% of the global smartphone market in 2012 — ahead of the iPhone, as well as Windows Mobile and BlackBerry smartphones”. The report also claims that the market share of the once-dominant Symbian OS will fall to 39%. 

So now we will wait with baited breath see if AT&T and Apple will allow subscribers to use GIPS enabled mobile applications to operate over 3G, and if other operators and devices will follow suit.

There are a lot of acronyms in this industry and it gets to be a bit too much sometimes but Unified Communications (UC) and Fixed Mobile Convergence (FMC) are two well-known acronyms and areas of growth in communications. According to ResearchandMarkets the Fixed-Mobile Convergence market (FMC) “could generate revenue of 900 million EUR ($1.32 billion) in 2013 in Western Europe’s five largest markets, and so accounting for 4 percent of total mobile services revenue.”

So it was great to be able to announce a partnership today with fg microtec who are making waves in the UC/FMC space.

Last week fg microtec (I really like the understated lowercase name) announced a worldwide partnership with Siemens Enterprise Communications Group (SEN) to further develop Siemens’ OpenScape MobileConnect platform.

The OpenScape product family includes open IP telephony, fixed mobile convergence (FMC) and IP-based unified communications (UC) solutions, which will allow Siemens customers to use their mobile phones intuitively with the OpenScape MobileConnect platform.

The fg FMC client will run initially on Windows Mobile devices such as HTC and Samsung. It will allow mobile phone calls to move seamlessly from a cellular to a Wi-Fi network, creating one telecommunications network.