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VoIP Service Revenues to Rise as Overall Telco Revenues Shrink, Says Juniper Research

Juniper Research - March 21, 2006

Revenues from Voice over IP (VoIP) services in the business sector will reach $18 billion by 2010, according to a new global VoIP market study by Juniper Research. The telecom industry analysts say VoIP will reshape the business communications service provider community, resulting in lost revenues on the order of $36 billion per year by 2010.


Barry Butler, an Associate Senior Analyst with Juniper, states: "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."
According to the Juniper Research report, factors driving VoIP growth include: The replacement of existing business circuit switched connectivity; The lower cost of calls; Massive growth in the Chinese telecoms market; Businesses reaping the efficiencies of carrying voice and data traffic over one network; and the realisation that integrating voice functionality into business critical IT applications will improve business productivity.
Juniper also reveals that the tipping point for the adoption of VoIP by businesses will shortly be reached, but also illustrates the barriers to adoption resulting from difficulties in network readiness and the regulation of VoIP in some countries.
Highlights from the recent study include:
• The total business VoIP services market will reach $18bn per annum by 2010
• Small business broadband connections will reach 40 million lines by 2010
• Hosted VoIP business revenues will climb to $7.6bn by 2010
• The lost telecoms service provider revenues resulting from businesses moving to VoIP will amount to $36bn per annum by 2010
• Losses incurred by traditional telecoms providers will be exacerbated by the rise of Internet Telephony Service Providers and VoIP Peering Houses
About the market research study


The 197-page Juniper Research report, "Global VoIP -- Hosted and Non-Hosted Services: Business and Enterprise Markets, 2006-2010" (March 2006; ISBN 1-904405-78-9), provides detailed five year forecasts for enterprise VoIP, hosted VoIP services, peer-to-peer VoIP, and business broadband connected VoIP across five principal regions of the world, plus the Asian powerhouses of China, India, Japan, Korea and Taiwan. Research for this report included interviews with many leading VoIP organisations, including: Service providers -- Skype, Tiscali, Masergy, Viatel, Thus, Telstra Europe, Telewest; Peering providers -- XConnect; and, Security vendors -- Fortinet, Symantec and Sonic Wall.