Voice over IP (VoIP) has gained significant momentum in recent years and now has a prominent place in the mobile ecosystem, forcing mobile network providers to take a different stance towards this technology.

The changing bargaining power

While mobile voice still remains the cash cow for network carriers, in the EU in particularly there are signs of stagnation and growth is now primarily driven by data revenues and the sales of Smartphones. The need to upgrade text and voice users to Smartphones and data plan deals has shifted the balance of power amongst the forces that define the competitive landscape in the mobile sector.

IPTV is no longer tied to commercial bundles of high speed internet access, television and telephone (triple play), but the success of the technology continues to be dependent upon the strength of the home broadband connection.

The uptake of triple play offerings in the UK is somewhat sluggish compared with the US and other EU markets. However, along with the two established players, Sky (satellite) and Virgin (cable), the adoption of high speed broadband internet connection over recent years has led to the rise of various forms of bundled and unbundled internet protocol television (IPTV) services.

For the purpose of this article, IPTV as a term includes subscriber-based offerings requiring the installation of set-top boxes (eg BT Vision, TalkTalk TV, etc.), but also free or commercial services that offer some sort of live television, time-shifted TV programmes, and video on demand (eg BBC i-Player, ITV Player, Channel 4 on demand (4oD), YouTube, LOVEFILM etc.) relying on other customer-premises equipment (CPE).