WhatsApp?

Mobile phone carriers have every reason to be afraid. Very afraid. WhatsApp announced its intention to enter the voice segment. With almost half a billion active users, WhatsApp boasts a subscription that is within spitting distance of Airtel, the second largest mobile network in the world.

The prospect of cheap international voice calls will not go unnoticed by chat users. Operators have seen a sharp drop in text (SMS) revenues as users have shifted in droves to mobile chat applications. A similar migration to VoIP will be a deadly blow to many networks. Mobile terminated revenues will shrink. Lucrative international calls will all but disappear. WiFi originated calls will be difficult to block. Unlike skype, WhatsApp takes advantage of existing phone numbers and subscriber recruitment is almost automatic.

New, affordable smart phones such as the one showcased by Firefox at the recent Mobile World Congress in Barcelona will allow emerging markets to skip traditional voice in favor of packet-switched calls.

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