SOURCE: Infonetics Research

July 31, 2006 13:12 ET

New study: Carriers look to VoIP to generate new revenue

CAMPBELL, CA -- (MARKET WIRE) -- July 31, 2006 -- Threatened by falling income from traditional phone service, more and more service providers are looking to voice over IP to help them beef up revenue generation, says Infonetics Research in a new study, Service Provider Plans for Next Gen Voice & IMS.

According to the study, 83% of the North American, European, Asia Pacific, and Central and Latin American service providers interviewed by Infonetics rated the availability of new applications and services the highest among drivers for adopting VoIP products, confirming that new revenue is the main reason they are migrating circuit-switched voice networks to packet networks.

"No longer is VoIP being offered only by specialist providers and VoIP pioneers, but by all types of providers in all regions of the world," said Stéphane Téral, principal analyst at Infonetics for service provider VoIP, IMS, and FMC. "Next gen voice services have elevated from lab curiosity to market reality. Still, this will not be an overnight process; replacing installed legacy gear in high teledensity areas like North America and Western Europe will take at least 10 to 15 years. In these areas, many carriers are letting their legacy equipment slowly churn while using VoIP now as an augmentation or an alternative, or when more capacity or expansion to a new location is needed. Meanwhile, new entrants to the VoIP market and incumbents in regions like Eastern Europe and South East Asia that are bringing teledensity up to average levels are deploying next gen voice as their primary platform."


--  Top 3 drivers cited by service providers for deploying VoIP: new
    applications and services, capex savings, and opex savings
--  #1 barrier: equipment interoperability
--  Service providers expect both incoming and outgoing VoIP traffic to
    nearly double over the next year, with international long distance
    traffic growing the fastest
--  SIP is becoming the leading protocol for communication between
    softswitch/voice application servers and media servers, reaching 100%
    penetration among respondents by 2007
--  Top rated benefit to deploying IMS-compliant equipment: ease of new
    service creation
--  Top rated barriers to deploying IMS-compliant equipment: the
    complexity of multimedia services and the lack of consensus on the
    definition of IMS architecture
--  Top strategies for offering fixed mobile converged (FMC) services:
    using SIP signaling to dual-mode handsets, integrating wireline and
    mobile services, and using IP core to transport voice between mobile
    switching centers
Infonetics' study is based on formal interviews conducted by senior analysts with 24 North American, European, Asia Pacific, and Latin and Central American service providers deploying next gen voice over the next year, as well as informal discussions with these and other service providers conducted throughout the year. The 129-page study examines the trends, drivers, barriers, and implementation plans of these providers, and covers legacy and next gen voice product expenditures, strategies and challenges, circuit to packet migration, technologies and manufacturers installed and evaluated, and other topics.

Download sample data at For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research ( is the premier market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user and service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Stéphane Téral
    Principal Analyst, Service Provider VoIP, IMS & FMC
    Infonetics Research
    +1 408.583.3371
    Email Contact