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Voice over IP services to make $13.76 billion

Businesses to sign up in droves as cost falls

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The European IP telephony market is set to generate $13.76 billion by 2005 -- up from $246.8 million today -- as the cost of the technology falls and the quality of the service improves. Consulting company Frost & Sullivan, which has published The European Market for IP Telephony believes the massive jump in revenue will arise because IP telephony will help cut communications costs for business. "By integrating all communications traffic over a single connection, a company reduces multiple connectivity charges and eliminates per-minute charges on intra-company phone calls and faxes," said Mitul Mehta, IT Research Manager at Frost & Sullivan. "Voice and fax traffic are carried for free with data and LAN traffic between location. "This offers businesses an opportunity to make significant savings," said Mehta. Market growth is expected to be fuelled by demand for enhanced applications helping it to transform IP telephony into a conventional medium for telecommunications. While Germany, the UK and Scandinavia are currently the dominant markets in this field it's anticipated that this will change in the future when Germany, France and the UK will account for the combined share of just under 60 per cent of revenues. ®

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