Dubai: As the telecommunication industry continues talks on legalising voice over internet protocol (VoIP) for international use, analysts say that it could be a source of revenue for operators.
Many people would easily be able to use VoIP software to contact people across the border, reducing the need for fixed-line or mobile calls. While this would potentially reduce revenues for the operators, the legalisation could be beneficial.
"If they do adopt VoIP, they will at least have the opportunity to perhaps take some of the revenues from illegal VoIP use in the country as well, so there is advantage to it too," Mohammad Hamza, senior analyst for the connected-home and MENA broadband, at Informa Telecoms & Media, said.
Get revenue
"The service will be run by the operators and not third party providers and it [is] also likely to be bundled with other services, unlikely to be a standalone product — therefore some revenue claw back will be possible."
With so many expatriates in the country, the arrival of international VoIP would have a significant impact on call revenues. It is this sector that uses the service most heavily. "It's a big sacrifice for fixed-line voice revenues, which are falling globally in most cases," Hamza said.
Mohammad Al Ganem, director-general of the Telecommunications Regulatory Authority (TRA) said the impact on fixed-line and mobile calling rates would not be affected much, as they have already been dropped, however it would be up to the operators to decide.
Healthy competition
"As long as it is not below cost and they don't violate rules set for healthy competition" operators could reduce the prices if they so chose.
Speaking on the possible rates for VoIP use, Irfan Ellam, telecom analyst at Al Mal Capital Research said the user would benefit more if calling another VoIP user. "If you are calling another mobile or fixed-line user, there will be a charge attached to ... the other party's [operator] at the other end," he said.
Hamza added that since illegal VoIP use is punishable by deportation in some Gulf states, many would prefer to use it legally even if it is slightly more expensive.
