WiFi doesn't mean VoIP freedom

Last week, FierceVoIP reported the introduction of the Nokia 6301, a handset capable of handing off live calls between cell and WiFi networks by means of unlicensed mobile access, or "UMA."  I wrote that it was "reported to be one of a handful of UMA phones, given the potential for them to eat into the lucrative wireless business model."

In response, I received a correspondence from one Steve Shaw from Kineto Wireless in Milpitas, Calif. Mr. Shaw put me straight on the capabilities of UMA. He writes: "We are the primary evangelists behind UMA, the global standard for mobile/WiFi convergence. It is certainly exciting that Nokia releases their third UMA phone last week. But I wanted to offer one comment on how/why a UMA-enabled phone is different than any other dual-mode device.

"UMA actually lets the mobile operator maintain control of services when the subscriber is on WiFi. When a subscriber walks into the home (WiFi location), the phone establishes an IPSec tunnel from the phone to the mobile network. Now all services (voice, data, IMS) are tunneled to/from the phone over the WiFi radio. In fact, the GSM radio is actually turned off when a UMA phone is in WiFi mode. With UMA, subscribers get exactly the same mobile experience, it's just that it runs over WiFi, and mobile operators have the same control of subscribers just like they are on the GSM network.  

"UMA is the only technology which makes WiFi friendly to the mobile operator. Products like the Nokia E51 (which was also mentioned) aren't particularly friendly to mobile operators. With a UMA phone, mobile operators can still bill for services (calls, SMS, MMS ...) over WiFi just like over the GSM network. With an E51 (or any non-UMA dual-mode phone like the iPhone), mobile operators can't bill for anything a subscriber does over WiFi."

Mr. Shaw states further that T-Mobile's HotSpot@Home, Orange, Telecom Italia, BT, Telia Sonera and Cincinnati Bell's HomeRun service use UMA.

A) I stand gratefully corrected, and B) I very much appreciate all feedback and observations. Please drop me a line at dmcadams@fiercemarkets.com.