Skip to main content

Cable & ISPs Lead VoIP Market Development

Voice over Internet Protocol (VoIP) telephone services, which last year counted less than 38 million subscribers worldwide, should have a subscriber base of over 267 million in 2012, according to a new study released by ABI Research.

"Hosted service providers, the pioneers of commercial VoIP, are going to grow to some extent, but it will be cable operators and other broadband providers trying to leverage their high speed data networks who will really push VoIP in the future," says principal broadband analyst Michael Arden. These operators want to add value to their broadband pipes, and they will generate new revenues over and above what they earn from their basic net access services.

While traditional telcos have been slow to embrace VoIP due to their huge investment in conventional telephone networks, their desire for total control of service quality and their fear of upsetting their existing customer relationships, the development of VoIP markets will play out differently in the world's major regions.

"In the U.S. market," says Arden, "it's driven by competition: cable operators are offering VoIP, hoping to take some customers away from the telephone companies. Eventually the cable operators will start offering converged services, and to compete, the telcos will have to go to VoIP as well."

"In Europe, though, many telecom operators are currently upgrading and implementing Ethernet networks for increased operational efficiencies. As an example, BT is doing this on a huge scale right now. European telcos are taking VoIP into consideration and making it part of their network upgrade. Meanwhile in Japan, the drive isn't coming from the telecom operators or even from the cable operators, it's really the third-party broadband players such as SoftBank."

Consumers' decisions to switch to VoIP telephony are at present based largely on its lower cost and the offer of simplified billing, but Arden sees those reasons as temporary. By around the end of the decade, he believes, the driving motivation will be how VoIP telephony is converged with video, online gaming and other services.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch