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September 18, 2012
Telstra Eyeing VoIP for Consumers in What May be a Risky Move

By Frank Griffin, TMCnet Contributing Writer

Offering VoIP service for mobile consumers may seem like a bad move for a telecom company, but that is exactly what Telstra (News - Alert) CEO David Thodey said at the company’s retail shareholders meeting in Sidney. The company would be expanding VoIP services for businesses to consumers, and will even go as far as to offer it on mobile phones, he elaborated, yet did not give an exact, rather explaining, “We've just got to pick the right time for that.”

The company’s Next G mobile broadband network currently has more than 7,000 base station covering more than 2.1 million square kilometers (1,304,879 square miles) for 99 percent of the Australian population. If the 2.5 million mobile broadband users start using VoIP regularly, it could strain the system unless it upgrades its capability before making this service available.

The news of this expansion comes at a time the CEO made an announcement about cutting jobs in order to stay competitive in the global market. According to The Australian, “The company will be forced to make drastic job cuts in its domestic call center operations as it shifts more jobs to Asia. This company will change over the next five years. We will not just be an Australian company, we will be an Asian company,” Mr. Thodey explained. “I have no option for the company because when you look at the growth opportunities and where our people will work, it will be spread across Asia.”

Image via Shutterstock

Mobile service providers are searching ways to integrate VoIP services without cutting themselves out of the loop. The sheer number of VoIP service providers means they will have to compete with them for their services. This is undoubtedly a growing market; ignoring it will not stop consumers from using their mobile devices for VoIP.

VoIP (Voice over Internet Protocol) was initially used to turn analog phone signals into digital so it could be sent over the open Internet. Since mobile devices are digital, it doesn’t need to convert the signals making the process much simpler than using landline phones. With the new generation of smartphones, however, you can use the cellular or WiFi (News - Alert) network to make VoIP calls, ultimately saving consumers a considerable amount of money if they use WiFi networks to make calls. The only problem is WiFi has a limited range and it is not widely available.

Whether wireless service providers like it or not, consumers are already using VoIP. In choosing to provide the service, Telstra is accepting the inevitable and trying to generate some revenue from a growing market.

Another contender in the VoIP space, Patton (News - Alert) Electronics, continues to adapt to the times and shows great strength as a result. For example, the company touted its many valuable resources to establish and solidify its worldwide presence. Included in this roundup are global events, tradeshows, seminar programs and in-house training to further educate and satisfy consumers. To learn more, click here.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Allison Boccamazzo

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