Feeds

IP Telephony far better than ‘two cans connected by string’

Ready for primetime

  • alert
  • submit to reddit

Build a business case: developing custom apps

IP Telephony has matured from having the "sound quality equal to two cans tied together with string" to become a serious consumer service, market analysis organisation In-Stat/MDR has claimed.

Consumer IP Telephony is 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, the company said this week.

In-Stat/MDR reckons that broadband providers will soon 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," says Daryl Schoolar, a senior analyst with In-Stat/MDR. "By 2007, the US IP Telephony market is forecast to grow to over five million active subscribers."

"While this shows a five-fold increase in subscribers over 2002, it still lags US Plain Old Telephone Service (POTS) with over 100 million households," Schoolar notes.

In-Stat/MDR forecasts that the biggest regions for future IP Telephony service revenue growth will be those with the highest household broadband penetration rates - the US, Asia Pacific and Europe. Currently the three biggest regions for service revenues and subscribers are the US, Asia Pacific and Middle East/Africa.

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 phone 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 to such an extent that consumers no longer see it as a specific service but merely an underlying transport technology.

In-Stat/MDR 's report, IP Telephony - A Consumer Application Worth Hearing, is priced at $2995, can be purchased from In-Stat/MDR's site here. ®

Related Stories

VoIP builds momentum in developing world
Cisco refreshes IP convergence line
Panama bans voice over IP
Reg readers place VoIP ahead of 3G
Mass VoIP moves closer to reality

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.