Wireless VoIP hopes receding

08 Feb 2005 16:55

Despite suggestions that 2004 would see mass take-up of Wi-Fi phones, analysts are now saying said that it will be 2009 before they become economically viable for the market as a whole

A new study suggests it will be a number of years before Wi-Fi phones manage to fulfil expectations.

Analysts at Infonetics Research say portable phones using Wi-Fi are taking hold in hospitals and businesses, but worldwide sales were negligible last year.

The results are disappointing. After years in development, the much-anticipated devices were supposed to take off in 2004. But with just 113,000 such handsets sold last year, or $45m in total sales, it's apparent the prognosticators were wrong. Rather, the sales "represent a market at its birth", as Infonetics analysts put it.

Wi-Fi phones combine two very hot and potent technologies -- Wi-Fi and voice-over-Internet Protocol (VoIP) software. Typically, VoIP subscribers use a wired phone line, whether a single home phone or any number of phones in an office setting. But many service providers see an opportunity to create wireless versions of their services using Wi-Fi. Introducing the appropriate VoIP services and technology could turn hot spots into giant phone booths.

But it could take at least until 2009 before the cost of Wi-Fi phones drops enough for a mass market breakthrough, according to Infonetics.

"Voice over wireless Internet devices have the potential to be a hugely disruptive technology," Richard Webb, Infonetics directing analyst said a statement. "As VoIP goes wireless, this will present a challenge not only to fixed line operators, but to mobile operators."

Story URL: http://news.zdnet.co.uk/communications/0,1000000085,39187218,00.htm