Subject: [NEXTEL-1] VoIP the favourite carrier for Push to Talk

From: [email-masked]
Date: Tue, 05 Aug 2003 14:14:08 -0400

VoIP the favourite carrier for Push to Talk

The widespread development of next generation, IP-based cellular technologies has
enabled a number of companies to target a potentially lucrative new revenue
source: push to talk services.  These developments have generated widespread
interest across the market as well as a certain amount of confusion. A new market
study from IMS Research investigates this new area in order to provide an insight
into the potential growth of these services and their effect on current revenue
sources and competing technologies.

Cellular push to talk, whilst unknown in the majority of the world, is not an
entirely new proposition to the market; in North America Nextel Communications has
held an enviable position amongst its peers. Without historically being able to
provide national coverage, Nextel has become the fifth largest cellular operator
in USA with market leading performance in terms of ARPU (average revenue per user)
and subscriber churn rate. Much of this is attributed to its Direct Connect
service which allows push to talk (walkie-talkie like) functionality across a
cellular network.

Encouraged by the Nextel's results a number of rival operators are announcing the
launch of competitive solutions. To meet this demand the majority of the leading
infrastructure companies have developed push to talk solutions, the majority of
which are based upon VoIP (voice over IP) technology. Such packet-based solutions
can be implemented upon 2.5G and 3G networks and have been announced by companies
including Ericsson, Motorola, Nokia, Qualcomm and Siemens. It is an opportunity
for companies such as Airvana, Comverse, fastmobile and Sonim Technologies to
increase their profile and make their mark within this area, often in partnership
with the larger companies.

Initial interest is widespread, with trials and launches from as far afield as the
USA to Finland, China and Jordan. Companies are looking to protect current market
position, gain a competitive edge, enter a new market sector or play catch up with
their rivals. However, with so few products available consumer awareness is very
low and the market is experiencing a high level of confusion. Most importantly,
confusion over push to talk seems to be greatest in two areas; those wishing to
take advantage of the services and those threatened by their introduction into the
market.

http://www.cellular-news.com/story/9446.shtml

Posted to the site on 05-Aug-03

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