By 20600674 (Entry #13 VOIP in Tokyo Cellphones)

Tokyo Telco Bets Big on Voice-Over-Internet
Japan Communications is set to offer mobile phones that make calls using voice-over-Internet protocol technology, which could lead to lower rates

Sometime in July, telecom services venture Japan Communications is expected to lease wireless spectrum from NTT DoCoMo (DCM) for a new type of cell-phone service. The Tokyo company is likely to be the first operator in Japan to offer mobile handsets that can make calls on-the-go using voice-over-Internet protocol technology.

JCI's service and other mobile VoIP services like it have the potential to change drastically the economics of cellular services. Analysts say that VoIP should mean lower rates for subscribers, especially for long-distance calls. That's good news for users in Japan, where basic monthly rates average around $60 and are among the highest in the world.

JCI officials have a loftier goal: Simplify communications by routing mobile-phone calls through the same digital channels we now use to browse the Net. Microsoft (

MSFT) and Cisco (CSCO) have been pushing this concept, known as "unified communications," in recent years, but hurdles remain even for these tech giants.

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Reflection:

VoIP on cellphones is excellent because of the low price!

However, there are some technical challenges that they must overcome.

VoIP has high tendency for dropped calls and interrupted connections.

If Japan Communications want to succeed in implementing VoIP on

cellphones, they need to overcome this technical problem.

If not, it will quickly alienate users.

They simply will not want to use the new technology.

If the technical problem is solved, then I think VoIP on cellphones will be a success!