December 30, 2010

Phone Voice Usage Declining to Zero

Voice usage on phones is declining rapidly to zero. An example is the screenshot of a phone bill below. Voice usage is being replaced by usage of data services including VoIP services.

Voice minutes on phone

Service providers such as AT&T, Verizon already see this trend internally.  But, instead of offering better data plans and data plans without caps which will lead to higher usage, higher revenue and a better user experience, they keep trying to milk the same cow – charge heavily for voice calls, then try to charge heavily for data with data caps and high overage charges.

With data and Internet, the user behaviour has already changed fundamentally. Traditional voice services have no value to a user anymore they should be given free. Instead of charging $60 for a voice service, the same $60 can pay for data services.

Data caps and usage-based pricing continue to discourage data use on phones – they should be removed. The increased use of data services and more customers will lead to much higher revenues/profits for the service providers.