The pervasiveness of IP as a communications protocol is sounding the doom for cell phone operators, says telecoms consultant Colin Orviss, who spoke at Internet Solutions`s Internetix conference today.
Orviss, whose company Logan Orviss International consults to telecommunications operators says: "Cell phone 2G broadband was a viable service five years ago. However, it has come into being too late and smaller service providers using WiFi/WiMAX are going to eat into their business models".
IP, as a communications protocol, makes allowances for the efficient use of frequency to route data and voice calls due to the prioritisation of the information packets, irrespective of the means of communication.
Orviss says cell phone operators have spent huge amounts of money on buying very expensive licences and building costly GSM infrastructures and now these are under threat from the proliferation of WiFi services that do not need licences.
"WiFi has opened the eyes of people. They now realise what they can get for a fraction of the cost (if not completely free) of 3G," he says.
According to Orviss, this use will now extend to WiMax, the longer-range version of WiFi, which will allow fixed line operators to enter the mobile arena.
Korea is the current leader in rolling out WiMax networks using the IEEE 802.16d standard for fixed mobility and from next year it will start introducing the 802.16e standard for roaming use.
Adding to the appeal of WiFi/WiMax is that the frequency spectrum is opening up, Orviss says.
"For instance, in Europe, the 2.3Ghz, 2.6Ghz up to 3.2Ghz frequencies are already available for use. Now the frequencies that were reserved for the old analogue car-phone services in the 400 to 460 Mhz range are also being opened up and this will add to the reach of these services," Orviss says.
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