Tarifica, Broadband Business Forecast's sister division has looked into why video calling hasn't been as popular and appreciated by customers as expected.

Among other reasons, the group found that the primary reason is the service's high price. Also discouraging is the lack of networks that support video calling, lack of compatible phones as well as lack of marketing of the service.

Video calling will enable a user to call another user, allowing them to see each other during the call. To do that, both users must have 3G-capable mobile phones and be in coverage areas. It has several benefits and in countries such as Japan, it is widely used by parents that can actually see their children while talking to them.

It will also allow people that are in different areas to see one another and business customers might find the service useful because it enables them to hold video conferences via their mobile devices. Despite its benefits, video calling is still not widely used or appealing for customers and its uptake is quite low.

At this year's Consumer Electronics Show in Las Vegas, there was a considerable number of video-phone demonstration, fixed (broadband and VoIP) as well as wireless (3G). In both cases, the gear alone was several hundred dollars which is discouraging even in the case of the VoIP services where calls aren't taxed by the minute, especially considering that compatible gear is needed for users at both ends.

All in all, if the prices for the service aren't cut down, there are slim chances that customers will start using it. The price of 3G handsets is already being cut down, with several phone manufacturers including LG aiming to provide more affordable 3G mobile phones.