• June 14th, 2012
  • Robert Zak

mobile phoneWith the rise and rise of mobile phones, smartphones and VoIP services as the dominant means of communication, it looks like old-fashioned public-switched telephone systems are slowly on their way out. This particularly seems to be the case in France, where VoBB use has grown at lightning speed.

By the end of Q4 2011, VoBB accounted for 52% of all fixed access, and 68% percent of all telecoms traffic in France. This trend has largely been attributed to the massive MTR (mobile termination rate) cuts imposed on networks by the regulators in France. After reaching record-breaking highs of between €0.1707 and €0.2467 in 2003, regular MTR cuts over the years have reduced the rate, with a target cap of €0.008 set for 2013.

While the cap initially only led to cuts in PSTN landline prices, a change in VAT for triple-play VoBB bundles in 2011 led the bundles being repackaged, and included fixed-to-mobile deals in many of them.

As such, this led to a huge jump in VoBB-to-mobile traffic, while PSTN-to-mobile traffic remained more or less the same, and all this due to a single fundamental change in VoBB price plans. Pretty amazing how one change can change the face of the telecoms industry.

[Source: Fierce Wireless]