International Phone Call Part 3

In the case of Europe, Voice Over IP has been slow to make an impact. Wholesale termination rates are already below $0.01/minute, so VoIP cannot offer significant benefits over TDM. The main change will come as PTT operators upgrade their national networks onto IP as an efficiency saving ??though the impact this will have on the cost of an international phone call, and the voice market model in general, is still not certain.

So in summary, the impact of Voice Over IP on the cost of an international phone call has been evident in a number of countries, and those shrewd enough to make use of the science should be able to take advantage of the great benefits this technology offers. A few things to bear in mind should help you identify these opportunities :

1. A country experiencing high economic growth should normally offer a Carrier benefits through a growth in the volume of international phone call volumes ??due to the increased demand for international communications and the resultant increased supply of cross-border bandwidth/VoIP facilities.

2. Look for those countries where regulation is loosening, such as some of the Middle East, as this will lead to wave of new VoIP entrants, and hence prices will be driven down and more consumers will take advantage of cheap phone calls.

3. Closed economies, eg Cuba, usually mean high market prices, due to restrictions on cross-border voice traffic. As these economies open up to VoIP, market prices will fall and demand will rise.

4. Keep an eye out for geographic regions where local pricing is still relatively high. VoIP helps break down geographic constraints, and future technology should assist in facilitating access to the local loop. In these economies, market pricing will start to fall and VoIP benefits will become evident.

By considering the above points, shrewd Carriers (and consumers alike) will be able to continue to take advantage of the benefits that VoIP brings to the market, ie cheap phne calls, and eventually improved quality. Whilst future technology advances are still uncertain, the world economy will continue to grow, and VoIP, as a key driver of this growth, will continue to thrive.

Paul Wittich has worked with both Voice Over IP and Telecommunications over the past 10 years, and now runs his own information website, The VoIP Network, an encyclopedia of Voice Over IP and broader telecommunications resources, focused on supporting development of the market and creating a broad understanding of VoIP in the Carrier, Business and Consumer communities. Click on the link above to start your VoIP journey.