Spotlight on: CounterPath

The migration of voice services to data networks is not a new phenomenon in the world of telecommunications, but for the mobile space the move has started to gain steam as carriers continue the roll out of high-speed data networks.
According to research from Juniper, the mobile VoIP market is expected to increase from 15 billion minutes worldwide in 2010 to more than 470 billion minutes. This move to VoIP is especially important for mobile operators that are attempting to maximize the capacity of their spectrum and network assets.
One company that has transferred its expertise from the wired world to wireless is CounterPath Corp., which provides its Voice over Internet Protocol and Unified Communications software to many of the industry’s top telecommunications providers. CounterPath’s solutions are targeted at the consumer and enterprise space with fixed mobile convergence, as well as more recent moves into the applications space allowing customers to download the offering directly to smart phones.
RCR Wireless News talked with CounterPath CEO, President and Director Donovan Jones to see how the company’s push into the mobile space was progressing as well as how the current market for mobile VoIP services was developing.
RCR Wireless News: There are a lot of different names in the mobile VoIP space. What is the biggest challenge in setting yourself apart from the crowd?
Donovan Jones: We constantly look for ways to differentiate our products and services. We do this by educating ourselves about industry trends and new technologies that impact our business and products; integrating our customer’s requirements into our product portfolio; building customized versions of our base products for our partners and customers; and constantly measuring ourselves against our competition
CounterPath is unique in that we have deployed services with global customers and partners, including Alcatel-Lucent, Avaya Inc., AT&T Inc., Bosch, BroadSoft Inc., BT plc, Cisco Systems Inc., Metaswitch Networks, Oracle Corp., Telmex, and Verizon Communications Inc., to name a few.
RCRWN: How does CounterPath view the free vs. paid aspect of mobile VoIP services?
DJ: Both free and paid models are key components to any services mix. Internet communications providers like Skype and Google have perfected the mix, producing a hybrid “freemium” model, in which some basic services are given away for free, while revenue is created with the addition of “premium” services. CounterPath’s view has been developed based on the customers we serve: tier-one to tier-three operators (wireline and mobile), partners that sell to those operators, and smaller Internet Telephony Service Providers. CounterPath works with traditional operators to fine tune their models to create unique freemium models they can leverage. Examples of services mixes are: free on-net calling with paid PSTN termination; free on-net calling, selected free roaming with paid PSTN termination; similar to 1-plus-2 with the addition of add-on services like advanced presence, HD video, and file transfer with storage. CounterPath’s job is to develop the products that enable our customers and partners to create successful business models.
RCRWN: Where has CounterPath seen the greatest acceptance for mobile VoIP services, consumer or enterprise?
DJ: Pretty much across the board. The price point of $7.99 in the Apple App Store for the iPhone or inside Google Market for Android makes it extremely easy for users to download and try the app. The amazing thing is that individual users are pushing their organizations to formally adopt Mobile VoIP based on their success of using our app. This is happening throughout our direct and indirect channels.
RCRWN: Which enterprise verticals has CounterPath seen as most accepting of mobile VoIP services?
DJ: Although we have seen significant interest in some verticals, such as the call center, we are seeing more significant adoption horizontally across the enterprise. Users want access to their PBX or hosted services regardless of where they are or what network they are on. For example, enterprise users want to leverage mobile VoIP when they travel abroad or work from home. CounterPath enables these scenarios across all of endpoints, both PC and mobile smart phones.
RCRWN: Can you describe how mobile VoIP services have been viewed in different countries? Are there any markets that are stronger for CounterPath than others?
DJ: The Mobile VoIP service need is similar across all major markets. Some markets are more aggressive than others. North America is a significant market for us, as are Western Europe (especially France) and Asia. We also are seeing opportunities emerge in the Middle East, Eastern Europe, South America and Africa. Mobile VoIP is truly a global opportunity.
RCRWN: How has CounterPath responded to increased efforts by wireless carriers to cap or limit data usage by consumers, which seems to pose a problem for the continued growth of mobile VoIP applications?
DJ: The caps we are seeing from mobile (and now wireline) offerings are squarely aimed at high-bandwidth consumption applications, such as video streaming. We have not seen an impact from cap limits.
RCRWN: CounterPath has done some fund raising recently. Can you comment on the general mood of the financial markets in relation to mobile-based offerings?
DJ: The capital markets are rebounding. There is careful consideration on which businesses to invest in and at what stage. CounterPath has been well received because we have an established business that’s nearing profitability, with four consecutive quarters of revenue growth. Coupled with In-Stat’s outlook that Mobile VoIP is expected to be a $32.2 billion industry by 2013 and by 2019, there is tremendous excitement around the CounterPath opportunity.