Why VOIP is headed for your cell phone

Business 2.0 has an article at CNN/Money that reports "soon VOIP could cut cell-phone bills, too - most of all for international users" based on the assumption that if consumers are "already paying for a data plan, routing international calls over their phone's data connection -- using VOIP -- instead of a carrier's voice network,...can save considerable money."

The article looks at one startup, Mino Wireless, which "is offering cut-rate VOIP calls at 2.2 cents a minute to 40 countries, and claims to be the first to introduce VOIP on mobile phones to the U.S. market. To use Mino, you need service from Cingular, Nextel or T-Mobile, a data plan, and an up-to-date phone that can run Java."

The company claims it has 20,000 users since launching its service in January. Mino is targeting "road warriors, immigrants, and students with ties overseas."

JupiterResearch analyst Julie Ask said, "For the person who wants mobility, who needs to be on a cell phone and reachable while moving around, VOIP is not going to be the primary phone service."

There is a lot of competition in the marketplace as well. Ask added that "Carriers are definitely interested in VOIP. They can implement it themselves, but they are concerned about voice quality and the ability to provide value-added services such as voicemail [on top of it]."

She pointed out that "if companies like iSkoot and Mino grow too big, carriers will no doubt block these services from their networks and offer VOIP themselves."