VoIP Service Revenues to Reach $18bn in Business Sector by 2010, but Overall Telco Revenues to Shrink by $36bn p.a. due to VoIP

Jupiter: Revenues from Voice over IP (VoIP) services in the business sector will reach $18 billion by 2010. VoIP Growth will be driven by: 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.

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.

• 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

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.

The report 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. (VoIP) services in the business sector Publ 20060328

Publ 20060320