Is Voice Dead?

By

Though the speed of the change is going to change from region to region, many now would agree with the notion that in many countries and markets, voice is becoming a feature, not a product with a tariff or a specific retail price.

The trend is not always obvious, in all markets, because global telecom revenue is growing. According to Insight Research Corp., telecommunications services revenue worldwide will grow from $2.2 trillion in 2012 to $2.7 trillion in 2018, at a combined average growth rate of 3.8 percent.

But that figure includes many distinct sources, fixed and mobile, video, data, voice, data services and many distinct geographies. Europe now is the poster child for voice revenue decline.

The European telecom service market decreased for the third year in a row, by 1.5 percent, the European Telecommunications Network Operators Association reports.

For such reasons, service providers in Europe have more reason than most to confront the growing possibility that voice will rather soon cease to drive a significant amount of service provider revenue.

That is one reason why one hears the phrase “voice is dead.” In at least some markets, sharply declining voice revenue is a reality. Revenue does not have approach zero, or close to zero, to have serious ramifications.

In a less direct way, the phrase also might refer to the fact that people use other methods to communicate. That also can have revenue implications, as when Internet apps displace both voice and messaging.

On the other hand, in many cases, the good news is that voice is no longer a significant driver of service provider cost, either. If voice and messaging are to remain essential functions of communications service, but won’t drive much revenue, the cost of providing voice and messaging has to be commensurately low.

Some would say the voice business is “rapidly collapsing,” at least in Europe, with fixed revenue possibly halving between 2010 and 2012.

That might not be as dire an outcome as you might think, since in at least some cases, revenue for providing voice services is hidden or buried or bundled with data services or other elements of service.




Edited by Rachel Ramsey
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Lessons Learned from Enterprise Oracle Cloud Migrations

By: Contributing Writer    7/1/2025

Switching to Oracle Cloud can feel daunting. Security risks, unexpected expenses, and performance troubles often turn what seems like an effortless up…

Read More

Protecting Business Assets with Smarter Security Frameworks

By: Contributing Writer    7/1/2025

Protecting your business is more challenging than ever. Cyber threats are increasing every day. Hackers target small and large businesses alike, searc…

Read More

Emerging Trends in Technology and Their Impact on Future Innovations

By: Contributing Writer    7/1/2025

Technology is changing faster than ever. Business owners often struggle to keep up. What's trending today might be outdated tomorrow. Falling behind c…

Read More

Tech Podcast Award Winners Bring Excitement and Enthusiasm to a Range of Important Tech Topics

By: TMCnet Staff    6/18/2025

Tech Podcast Award winners produce engaging, informative, and often entertaining content, bringing valuable insight from industry front lines to the e…

Read More

How Mobile Technology is Driving the Shift to Casino Apps

By: Contributing Writer    6/12/2025

Recent years have seen casino apps completely changing the online casino experience. Thanks to mobile-first technology, apps are becoming the default.…

Read More