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Monday, October 26, 2009

iPhone VOIP Capabilities Could Nullify Network Operators

iPhone VOIP Capabilities Could Nullify Network Operators

We are at the dawn of a new revolution in mobile communications, the new 3G iPhone is tantalisingly close to being released into the wild. Mobiles phones these days are not simply just a phone anymore, in fact Nokia now claim to make portable computers rather than portable phones. However the new, all singing, all dancing iPhone is just a little bit more special, so much so, that paradoxically it could even spell disaster for the very network operators that supply it.
The iPhone, despite not being the most technologically advanced handset on the market, still has a variety of significant strengths which puts it in a league of its own. Most significantly is the unique tariff bundled with the iPhone deal, which unlike most other tariffs offers unlimited data usage and free wifi access to 9500 hotspots in the UK. This deal is nothing new with the second generation iPhone, however the fact that the new handset incorporates high speed 3g data transfers, means the already freely available data will now always be high speed!

The fact that an iPhone is always online immediately springs to mind the application of voice over IP. As we all know thanks to Skype etc. making VOIP calls, no matter where you are in the world, is free. Combining the nature of a mobile phone which encompasses a microphone and speaker, with the excellent connectivity of the iPhone, not to mention the huge storage capacity, makes the iPhone the perfect VOIP client.

One potential pitfall, which explains why this idea has not been exploited previously, is the ability to make iPhone applications. Only recently has Apple decided to make public the software development kit (SDK) for the iPhone, which will open the flood gate for third party applications to be developed. For a small fee you can download the standard or enterprise edition of the SDK, both allowing developers to make free and commercial applications for both the iPhone and iPod Touch. Apple have most likely realised the immense competition of the open source mobile platform Android, which Google hopes to release before the end of the year.

The iPhone v2, also debuts as a pay as you go handset in the UK too. Despite the new iPhone being marketed as considerably cheaper than the previous model, I am still intrigued just how much pay as you go users will need to fork out for the handset. Additionally how the all important unlimited data will work on PAYG, hopefully o2 will still grant this with a 10GBP top up each month.

The pay as you go alternative will almost certainly be one of the most expensive handset only deals. However, as this article set out to demonstrate, PAYG might ultimately work out cheaper in the long run, compared to expensive high value tariffs, the network operators want to lock you in to. If you fork out the initial hefty sum for the handset on PAYG, you might never have to pay for a phone call again with the opportunity of a VOIP applications. Imagine completely free local, national and international phone calls, internet, email and text all from your new iPhone, it does sound pretty tempting!

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