Mobile VoIP Poised to Become the Principal Transport for Various Access Technologies, Says Frost & Sullivan

LONDON, May 20, 2010 - Mobile VoIP is no longer just hype, but has become a credible threat to
traditional voice revenues. Considering that it is only a matter of time
until Internet protocol (IP) becomes the principal transport for various
access technologies, an ambitious group of mobile VoIP start-up companies are
creating a paradigm shift in the way users communicate with each other, with
voice services moving to a true Internet era of Telco 2.0.

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New analysis from Frost & Sullivan (www.wireless.frost.com),
Impact of Mobile VoIP on Next Generation Cellular Networks, finds that that
at the end of 2008, approximately US$605.8 million of mobile VoIP revenues
were generated in North America, Europe, Asia Pacific and Latin America. This
is expected to grow to US$29.57 billion by 2015. The technologies covered in
this research service are high-speed packet access (HSPA), third-generation
long-term evolution (3G LTE), global system of mobile communications (GSM),
IP multimedia subsystem (IMS), HSPA+, general packet radio service (GPRS),
voice over Internet protocol (VoIP) and session initiation protocol (SIP).

"The emergence of flat rate mobile data pricing, positive growth of
smartphone shipments, and high-speed mobile broadband availability has
spurred the adoption rate of mobile VoIP," says Frost & Sullivan Senior
Industry Analyst Saverio Romeo. "Mobile operators realise they can no longer
ignore the fact that mobile will be a key component of integrated IP-based
communications and next generation wireless technologies such as HSPA+ and
LTE."

Significant traction in the application space, primarily driven by the
success of the iPhone, has resulted in several smartphone vendors making
provisions in their applications stores for users to download and use
third-party VoIP clients over both wireless fidelity (WiFi) and cellular
broadband networks.

However, many cellular operators have prohibited the use of mobile VoIP
over their cellular networks, with some imposing a surcharge to avoid
cannibalisation of their circuit-switched voice revenue streams. Moreover,
cellular operators face intense competition from the more popular Web-based
VoIP alternatives that are permeating the mass market.

"Despite user demand for cost-effective services, some mobile operators
will continue to discourage mobile subscribers from using VoIP over cellular
networks and suggest that it will not provide the same quality, efficiency
and reliability of services offered by the GSM network," explains Romeo.
"Recent surveys indicate that nearly 60 to 70 per cent of the major European
mobile operators prohibit or restrict the usage of VoIP over their popular
mobile broadband data plans."

Mobile operators should eventually do away with imposing bans or
surcharges to their mobile broadband packages to support mobile VoIP, as the
client devices supporting HSPA+ and LTE will be based on open platforms and
support SIP for third-party applications.

"When the operators migrate to an all-IP IMS network, they should drive
innovative services such as multimedia telephony, high definition voice,
integrating voice with context-based information about the user, and the
device from a converged presence-enabled address book," concludes Romeo.
"This will enable them to differentiate their services from mobile VoIP
start-ups."

If you are interested in more information on this study, please send an
e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title, and
the contact details.

Impact of Mobile VoIP on Next Generation Cellular Networks is part of the
Mobile & Wireless Growth Partnership Services programme, which also includes
research in the following markets: The Use of Social Network Analysis in the
Telecommunications Industry; The Modes of the Mobile Content Industry - The
Stores and the Web, Sustainability in Telecoms, and Mobile Broadband in
Central and Eastern Europe. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

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          Impact of Mobile VoIP on Next Generation Cellular Networks
                                    M3D5-65

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-41-46, joanna.lewandowska at frost.com