As buzz continues to build over Apple’s fabled ‘iPhone,’ speculation increases that such a cell phone will eventually take advantage of voice over IP (VoIP), which is projected to eventually cause serious problems for cell carriers.

According to a blog post at Innovation Analysis Group (IAG): “UK consultancy Visiongain believes that this spring Apple will launch its rumoured ‘iPhone’ - a high-end cellphone to which VoIP capability will subsequently be added. Apple and networking partner Helio are targeting the same young-consumer market as the one in which the iPod music device has been such a runaway success, according to Visiongain telecoms analyst Pam Duffey.”

Helio is an MVNO, or mobile virtual network operator. It uses another cell carrier’s network to offer its services. According to IAG’s blog, Helio has said it expects to sign up three million customers and hit the US$2 billion mark by 2009.

IAG also quoted Ms. Duffey as saying: “iPhone will probably be as disruptive to the existing carrier market as the iPod was to the mobile music industry. And when VoIP capability is added it will be even more disruptive.” VoIP is growing in the United States and the market for it could be worth as much as $3 billion by the end of the decade, according to IAG.

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An Internet phone service called JaJah will become standard on a significant cell phone operating system, and the Opera Web browser for computers and cell phones, the company announced April 5.

The announcement was expected from the Palo Alto, Calif.-based company, and the enhancements will be available in June.

With the moves, JaJah is advancing its VOIP (voice over IP)-based feature further than a lot of its competitors have.

While VOIP is common on personal computers and home phones, cell phones remain relatively virgin territory.

JaJah is seeking the benefits of being first to try a particular market, but also risking the equally as spectacular first-mover pitfalls.

VOIP is a way to make phone calls using an Internet connection rather than a traditional home or cell phone.

VOIP’s attraction is how cheap calls are, due to the efficiencies of using the Internet over analog telephone technology developed a century ago.

Many VOIP operators piggyback a basic free service with premium features to call cell or landline phones at per-minute rates.

There are scores of VOIP operators, the biggest being U.S. cable providers, which are using VOIP to sell unlimited monthly calling plans that compete against local phone companies.

There’s also Vonage Holdings of Holmdel, N.J., and Skype, the peer-to-peer VOIP operator based in Luxembourg and owned by eBay.

http://www.eweek.com/article2/0,1759,1946758,00.asp?kc=EWRSS04069TX1K0000701

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