Published on the same day that Google announced Google
Talk its entry into the instant messaging and internet
telephony markets the report reveals that in 2003 the number
of fixed phone lines fell for the first time in OECD countries.
This, says the report, is a result of a growth in market share
in favour of mobile operators – a growth that continued in 2004 and
2005.
But the report also highlights internet telephony, or Voice over
Internet Protocol (VoIP), as a serious threat to both mobile and
traditional operators.
VoIP is basically the transport of telephone calls over an
internet connection. For users already paying for a broadband
connection, long distance calls can become free of charge, albeit
that VoIP handsets tend to be much more expensive than standard
handsets.
This can be seen, according to the OECD report, in a comparison
of the costs of calls via Skype, a popular VoIP provider, and via
traditional fixed-line carriers in OECD countries. This reveals an
average saving of 80% using Skype.
According to the report, increasing competition from this type
of platform may require a re-examination of existing regulatory
frameworks governing traditional and mobile operators. In
particular, regulators may need to review obligations regarding
universal telecommunications service as more companies offer
telephone services over the internet without having a physical
presence in a country.
Looking ahead, the OECD predicts that new service offerings from
traditional carriers, such as Wi-Fi hotspots in cities, will
provide tougher competition for 3G mobile operators than these had
been expecting when they obtained their licenses, in many cases for
large sums.
To maximise revenue, the report suggests, 3G operators may need
to change their charging policies, for example by persuading
customers to sign up for longer term contracts rather than
purchasing calling time on an ad hoc basis, as is presently the
case for a large percentage of customers relying on pre-paid
cards.
The report also predicts that service operators will
increasingly offer integrated video, voice and data products in a
single service package and that the growing popularity of
downloading video from the internet will reduce the time people
spend watching free-to-air TV.
This in turn will drive down audience share and advertising
revenue for broadcasters and make it harder for public-service
broadcasters to meet their social policy objectives, says the
report.
