Wednesday, March 22, 2006

VOIP to Take $35 Billion from Telcos

An article from Telecom Magazine sites a recent Juniper study that can't be good for the RBOCS.

From the article:

"According to a new report from Juniper Research, VoIP revenue from this sector -- worldwide -- is projected to reach an annual US$18 bn by 2010.

Other projections that Juniper throws into the business VoIP mix is that small business broadband connections will reach 40 million lines by 2010 and that hosted VoIP business revenue will reach US$7.6 bn.

Despite this new VoIP revenue stream, telcos will still make a net loss in revenue -- courtesy of VoIP’s arrival -- to the tune of an annual US$36 bn. This loss, presumably, is largely down to the fading away of telcos’ more lucrative leased line revenue, although Juniper does not say so explicitly in its press statement.

“VoIP has the potential to transform business communications in terms of call costs, cost of operations and integration with business processes,” says Barry Butler, report author. “However, as with other IP-based platforms, IP is a disruptive technology which will reshape the business communications service provider community.”



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