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Phone Industry Survival Hinges on Explosive Growth of Packet Voice, says Insight Research
BOONTON, NJ. October 28, 2002: Phone companies are accelerating their use of the Internet and other packet networks to carry voice calls, says a new research study from INSIGHT Research. From a mere $13 billion in 2002, voice over packet (VoP)-based services will grow to nearly $197 billion by 2007, according the study.
INSIGHTs newly-released report, IP Telephony: Service Revenue and OSS Expenditures for Voice over Packet Networks 2002-2007, reveals that VoP services will grow at a compounded rate of over 72 percent over the forecast period, making packet voice services one of the fastest-growing segments in the battered telecommunications segment. VoP includes all forms of packetized voice including VoIP, voice over frame relay, and voice over ATM.
Cost savings for both customers and carriers are driving the near-term growth of VoP. As packet-switched voice displaces the older circuit-switched voice technology, VoP carrier revenues will explode, fueled by lower operational costs to carry a voice call along with new service offerings such as follow-me, unified messaging, and multimedia communications.
The ability to be profitable in voice services is essential for the survival of almost all telecom service providers," says Robert Rosenberg, president of INSIGHT. Even though data exceeds voice in terms of traffic volume, voice revenue still pays the bills for phone companies, and will continue to for years to come, which is why the operational savings associated with VoP are so important," Rosenberg concludes.
Associated expenditures on the operations support systems (OSSes) used to create and maintain VoP-based services will also increase over the forecast period at a compounded growth rate of 58 percent, indicating heavy investment in correlation with the phenomenal revenue growth of VoP.
A free report excerpt, table of contents, and ordering information is available online at http://www.insight-corp.com/iptele2.html. This 177-page report is available immediately for $4,195 (hard copy). Adobe Acrobat (PDF) report licenses are also available; visit the Insight Web page, or call 973-541-9600 for details.
A free report excerpt, table of contents, and ordering information is available online at http://www.insight-corp.com/iptele2.html. This 177-page report is available immediately for $4,195 (hard copy). Adobe Acrobat (PDF) report licenses are also available; visit the Insight Web page, or call 973-541-9600 for details.
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