Global News

August 5, 2003
IP telephony -- an application worth hearing

UNITED STATES -- According to In-Stat/MDR's recently published report, inspite of going through a boom and bust cycle in the past, IP telephony still remains a viable consumer service. The high-tech market research firm believes that consumer IP telephony is currently at the beginning of a transition phase with the growth of broadband enabling IP telephony providers to merge lower rates with greater quality and features. Broadband providers, over time, will see IP telephony as an application that will help grow overall broadband usage, as it increases the overall value of the broadband service for the consumer.

When people think of consumer IP telephony, they often think of sound quality equal to two cans tied together with string, or as a dot.com fad. IP telephony, however, is far from either one of those things. Overall by 2007, the US IP telephony market is likely to grow to over 5 million subscribers. While this shows a five-fold increase in subscribers over 2002, it still lags POTS with over 100 million households.

In-Stat/MDR also found that:

  • Currently the three biggest regions for service revenues and subscribers are the United States, the Asia Pacific, and the Middle East/Africa.
  • The biggest regions for future service revenue growth will be those with the highest household broadband penetration rates. Household broadband penetration will lead to greater device-to-phone services, which tend to generate higher monthly recurring service fees than either PC-to-phone or phone-to-phone. During 2006 and 2007, the US will see greater interest on the part of traditional telephone providers in offering IP telephony services.
  • As device-to-phone service grows, In-Stat/MDR expects to see the emergence of more services that satisfy the requirements for primary line service, especially from the cable operators. Eventually IP telephony will grow, so that consumers no longer see it as a specific service, but merely an underlying transport technology. Eventually IP telephony will be the POTS.

Contact:
In-Stat/MDR

Tel: +1-480-609-4533
www.instat.com


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