Voice-over-IP (VoIP) Revenues to Dominate the Broadband Service Sector, Generating $26bn by 2009
A new study from Juniper Research predicts how broadband services will evolve over the next five years.
(PRWEB) March 19, 2004 --A new report from industry analysts, Juniper Research, finds that the VoIP market will become the key revenue generator for broadband service providers by 2009, contributing to an overall value-added services market of $47bn. This will be in addition to the $43bn spent on broadband access in the same period.
Ian Cox, Broadband Specialist at Juniper, said Broadband penetration has now grown to a level where the industry is on the verge of a revolution, as it is now economically attractive to launch value-added services to a mass audience".
The challenge to service providers will be to provision these new services as cost effectively as possible as traditional revenue streams from existing fixed-line voice services continue to decline. Flat-rate IP based voice tariffs will gradually replace time and distance related tariffs. These declines may, to a certain extent, be off-set by a reduction in operating costs for converged networks.
BROADBAND VALUE-ADDED SERVICES
Residential Sector ($bn) 2004 2009
On-line Games $0.60 $2.90
Music Downloads $0.41 $2.12
Video Services $0.80 $5.71
Voice-over-IP $2.48 $6.36
Total $4.29 $27.10
Business Sector ($bn) 2004 2009
Online Data Storage $0.31 $2.92
Web Hosting $2.67 $5.28
VPNs $0.55 $2.36
Voice-over-IP $1.01 $9.53
Total $4.54 $20.09
Although much attention has been paid to the more complex and ‘sexy value-added services like video-on-demand and on-line games, it appears that the biggest opportunity will be in voice services as broadband IP-voice takes over from traditional circuit-switched voice; driven by lower operating costs and competition between incumbents and new licensed operators.
Implications
• Service providers need to take advantage of the opportunity provided by broadband value-added services to protect their profitability and move as quickly as possible to a converged network.
• Equipment vendors need to have in place fully integrated systems in order to provide truly ‘one-stop shop solutions to providers.
• Content providers need to prepare for this on-going revolution by re-purposing and protecting their content for digital distribution, or risk losing market presence.
White papers and further details of the study ‘Broadband Added Value Services: Business & Residential Opportunities can be freely downloaded at http://www.juniperresearch.com. Alternatively please contact Michele Ince at micheleince@juniperresearch.com, Telephone +44(0)1256 345612.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry surveys.
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