
VoIP growth to dent telecoms sales
23/03/2006 16:20:37
Surging revenues from Voice over internet protocol (VoIP) services are expected to cost telecoms service providers $36 billion per year in lost sales by 2010.
UK firm Juniper Research predicts that revenues from VoIP in the business sector will rise to $18 billion by 2010, with call costs falling and many companies replacing existing circuit switched connectivity.
The study forecasts that huge growth in the Chinese telecoms sector and the greater efficiency of transporting voice and data traffic over a single network will drive growth.
According to Juniper, small business broadband connections will reach 40 million lines by 2010 and hosted VoIP business revenues will increase to $7.6 billion. The company has drawn up forecasts for VoIP across five key world regions based on interviews with leading VoIP organisations.
The VoIP report claims that the tipping point for the adoption of VoIP by businesses is looming, but warns that barriers to adoption still exist, with problems including regulation of internet telephony in some countries and struggles with network readiness.
Report author Barry Butler commented: "VoIP has the potential to transform business communications, in terms of call costs, cost of operations and integration with business processes.
"However, as with other IP-based platforms, VoIP is a disruptive technology which will reshape the business communications service provider community."
© Adfero Ltd.
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