Toolkit

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4.6 VoIP Over Wireless Networks

Wireless networks will have a substantial impact on VoIP service development, particularly in developing countries.

As wireless and VoIP traffic increase, differences in the terms and conditions under which wireline, wireless and VoIP operators interconnect networks will create opportunities for arbitrage, and distort markets. Differences in call termination rates and interconnection arrangements can cause operators to adjust traffic flows to obtain the lowest possible rate, and to minimize regulatory fees.

Incumbent operators may seek to exploit “bottlenecks” and essential facilities, by imposing above cost termination charges to deliver calls to wireless subscribers, or to deliver wireless traffic to wireline subscribers. This may encourage wireless carriers and VoIP providers to avoid the incumbent’s network by seeking cheaper alternatives for originating and terminating traffic.

Examples of alternative delivery options are:

  • Third generation mobile networks: These promise to have sufficient bandwidth and operating standards to support high speed data services, presumably including VoIP,
  • Wireless-Fidelity (Wi-Fi) networks: Wi-Fi can also support voice telephone calls. Wi-Fi is generally provided as unlicensed broadband network access, on an stand-alone basis at homes, offices and public “hot spots” such as airport lounges and coffee shops,
  • Voice Over Wi-Fi (VoWiFi): VoWiFi can integrate Wi-Fi access with licensed third generation mobile services. With seamless roaming between the two networks, subscribers could use voice over a WiFi network (where available) and mobile connections where WiFi is missing, or outside a WiFi network. VoWiFi has the potential to allow VoIP providers to completely bypass the PSTN. [1]
  • Worldwide Interoperability for Microwave Access (WiMax): WiMax is a wireless broadband technology, which has a range of up to 30 miles and can be used for wireless networking like Wi-Fi, but at higher data rates over longer distances.

ENDNOTES

[1] See Organisation for Economic Co-Operation and Development, Directorate for Science, Technology and Industry, Committee for Information, Computer and Communications Policy, Working Party on Telecommunication and Information Services Policies, Development of Voice Over WIFI by Integrating Mobile Networks, DSTI/ICCP/TISP (2004) 9/FINAL (April 14, 2005), at p. 6.

RELATED INFORMATION

About the Internet
About VoIP
Arbitrage Opportunities in the ICT Sector
VoIP and Regulation
Interconnection Pricing for VoIP

Last updated 17 Nov 2008

The ICT Regulation Toolkit is a joint production of infoDev and the International Telecommunication Union.

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