The so-called voice over Internet protocol (VoIP) industry could finally be hitting critical mass, just as the satellite radio industry did early in 2004, according to a report by telecom analyst Michael Rollins and cable analyst Niraj Gupta, both of Smith Barney.
The pair don't dispute the view that the cable companies are best positioned to benefit from the move to VoIP, at least in the short term. U.S. cable companies have been offering phone service for some time and ''in our opinion, voice over IP only serves to enhance their offering,'' they wrote.
But they expect to see the wireless companies get into the game in the medium term, "as VoIP services seem like a natural extension of their cellular voice offerings" particularly as handsets become available that handle both cellular and wireless VoIP telephone calls. "We see the potential for a very compelling 'one-stop voice shop' offering from the wireless companies," they said.
There are some pure VoIP companies, but they are facing an uphill battle against entrenched cable and telephone companies, the two analysts said.
