SOURCE: Juniper Research Limited

March 20, 2006 07:14 ET

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

HAMPSHIRE, UK -- (MARKET WIRE) -- March 20, 2006 -- Revenues from Voice over IP (VoIP) services in the business sector will reach $18 billion by 2010, according to a new study by Juniper Research. 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 Juniper report reveals that 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. Highlights from the report include:

--  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
    
Author Barry Butler states: "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.

Research for this report included interviews with many leading VoIP organisations, including: Service providers -- Skype, Tiscali, Masergy, Viatel, Thus, Telstra Europe, Telewest; Peering providers -- XConnect; Security vendors -- Fortinet, Symantec and Sonic Wall.

Free whitepapers and further details of the study "Global VoIP - Hosted & Non-Hosted Services: Business & Enterprise Markets, 2006-2010" are available at http://www.juniperresearch.com. Alternatively please contact Michele Ince at michele.ince@juniperresearch.com, Telephone +44(0)1256 830002/476200.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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