VoIP on a Smartphone is the key. If you’re always in a WiFi environment, this is even easier for you to setup – if you still require a 3G connection, I’ll get to that later.

If you’re in the US, you can use services like Google Voice for calls. This isn’t available everywhere yet though (including the UK), so we have to look at other options. If you have a Skype number, you could use that – or you can use a SIP Provider like SIPGate. With most SIP providers you can select a telephone number from a selection of countries, and most area codes within those countries. You’re also not forced to stick with one inbound number – you could have several numbers directed to your mobile – one for your customers in the US, one for family in the UK and one for your friends in New Zealand?

Once you have a number, you’ll need to setup some VoIP software on your Smartphone. Skype, SipDroid, Fring, Truphone are a few examples. You can generally call Skype-to-Skype, GTalk-to-GTalk and SIP-to-SIP for free, so depending what services your friends are on, you may not even need to spend a penny. For traditional landline/mobile calls, you can use your SIP provider to make calls at cheaper rates that traditional telecoms can provide (including international), usually on either a pay-as-you-go or pay-monthly service – with no contracts. That’s calls taken care of.

Most of these services provide SMS messaging too (Skype, Google Voice). But with SmartPhones there’s not even a need to use traditional SMS messages. With more and more apps coming out like Ping! and WhatsApp – you can send free messages to your friends, directly from mobile to mobile.

If you do need a 3G connection, there are niche sub-providers like GiffGaff who offer free SMS/Calls inter-network, but more importantly free Data access. All you need to do is top-up £10 every 3 months. That’s £3.33 a month for unlimited data usage. If you pair this with VoIP calls, you could be running your mobile phone for significantly less than what you’re paying at the moment.

During Kevin Holley‘s (co-inventor of SMS) presentation at #140conf London last year, I recall him mentioning that text messages are extremely over-priced. They use up so little bandwidth that the actual cost is practically negligible - which is probably why most networks are quick to bundle these up to entice you into their 18month contracts.

With free Internet access becoming more regularly available, is there even any need to be sending SMS messages? I’m not making a statement, that’s a genuine question.

We have Twitter, Facebook, BlackBerry Messenger, and cross-platform Push-supporting applications like WhatsApp for sending direct messages just as quickly as SMS. Not to forget Instant Messenger programs like GTalk, Skype, AIM, MSN etc. All free. Most of these services offer other benefits – like not having to know your friend’s phone number. We take address books for granted, but if you don’t happen to have your friend’s latest number stored – there’s no way of reaching them. Whereas you can hit them up on Twitter/Facebook/Gtalk/Skype wherever you are, whoever’s phone/Internet connection you’re using.

I think the most important aspect here, is that we don’t need our phones to send quick text messages anymore. We’re using these programs to communicate with our friends all the time on our computers – so when we’re out and about with our phones, it just becomes second nature to continue the conversation over those platforms.

It seems to me that we’re right on the verge of a tipping point. We’ll soon have blanket coverage throughout the whole of the developed world. I think now, the most important question is which technology will become predominant. They can’t all survive, surely?

With 4G connections rivaling adsl and cable broadband speeds, and a lot of our devices being mobile – who needs a home Internet connection? It’s not only the mobile networks that are interested in this technology, in the United States private equity firms are planning to cover the whole country by 2015. The technology is certainly there.

On the other hand, with broadband connections becoming faster due to fiber optic roll-outs everywhere, mobile network speeds will soon be lagging far behind, again. Companies like Google are taking an interest in providing fiber to the home in entire cities. This is after they’ve already demonstrated their blanket wifi capabilities in San Fransisco. If there’s Free wifi everywhere, why would anyone need a mobile phone provider? We could all use VoIP technology straight from our Smartphones. Mobile apps like Skype and Truphone are already available, and most Smartphones also offer VoIP capabilities directly from the handset – not to mention VoIP codecs tend to be of better audio quality than regular GSM calls.

Of course, even Google doesn’t have the bankroll to provide entirely free wifi to the whole country, but with more and more wifi providers resulting to free access models – it’s only a matter of time until we’re totally covered.

So then again the question is raised, which technology will prevail?

Personally I don’t think the mobile network industry has a chance of surviving in the developed world for much longer than a decade, at least with the current business model. I think it’s quite obvious that once free Internet access is available everywhere, more and more people will discover that they don’t actually need to be paying extortionate monthly fees and be tied into 18+month contracts, simply to stay connected.

Think about it, when you buy a new mobile phone, you’re usually focusing on the hardware – you find something you really like, then you have to battle with yourself and the providers, to try and find a tarrif that fits you. For the most part they’re overly expensive. If there’s ever a reason you don’t buy a new phone, it’s usually because of the contract surrounding it. Wether that be having to move network, or getting locked into another x month term, it’s never pleasant.

Google are big enough to bring VoIP into the mainstream. I know, I know, Skype have been trying to do this to, and I give them props. But they just don’t have the mainstream clout that Google have. I think betweeen the two companies we’re seeing some amazing changes in the mobile space.

Imagine purchasing a handset, simply because you like it. At a reasonable price. Now imagine not having to shift providers, or sign up to 12/18/24 month contacts. You simply login to your Skype or Google account and you’re away. All your contacts, voicemails, text messages in tact. People can even borrow your phone, and use their own accounts!

VoIP is cheap as chips, you could quite easily cut your current mobile phone expenses in half (or more) by switching to VoIP. But what’s holding it back? … mobile network providers.

At the moment, there are too many rules about what kind of applications can and cannot by used over 3G. While there area a minority of networks that allow users to run VoIP software of a 3G connection, the majority are scared shitless. So they should be.

As I can see it, there are two ways for Google to take over the world mobile market. If Google get hold of some mobile spectrum, forming their own network, or if they provide blanket wifi access. Both of which are not new ideas. Google are already thinking about acquiring wireless spectrum, and they’re already providing blanket wireless internet in some places. But neither of which are on a large scale. At least not anywhere near enough to threaten the current mobile network providers at current.

VoIP still has a long way to go in the commercial market, people still pay silly “line rental” (mostly because a PSTN line is required for most broadband connections) when they could be plugging their phone into a router. Most companies use some form of VoIP, because they understand the cost savings – especially with multiple handsets, and/or international calls. I just can’t wait for the day that VoIP rules the commercial sector (especially mobile handsets) as it currently does the business sector.

One thing that’s really bothered me about Skype is the lack of SIP compatibilty. Skype has always been very proprietary and closed-off. For example, with any other SIP provider you can call cross-network for free, as well as the obvious internal SIP-to-SIP calls being free. Skype has always offered free Skype-to-Skype calls, but that’s as far as they went. The other, arguably more important aspect of supporting the SIP protocol is the option of using SIP hardware. I mentioned before, most businesses use VoIP telephones these days, most of which are SIP compatible. If Skype wanted to reach a broader audience they only have to allow regular SIP phones to connect to the Skype service. This is what they’re testing at the moment.

With Skype-to-SIP you can use a regular SIP phone to connect to the Skype network, which not only allows you to use your Skype credit for outgoing calls and keep your Skype number for incoming calls, but also allows you to call Skype users for free. This is fantastic, a good move from Skype. Now the sexy Cisco 7960 sitting on my desk can be used to make calls to my Skype friends for free.

I’m so excited about Google Voice on the mobile, and Skype over SIP. These technologies are really shaping the future of telephone communications. Let’s face it, nobody likes wearing a headset plugged into a computer to make phone calls.