Feeds

IP convergence eat away at voice services cash cow

Customer pressure

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

IP convergence is forcing European telecoms operators to re-evaluate market strategies and move away from their traditional cash cow voice services and circuit-switched networks to packet-based infrastructures.

According to a Yankee Group survey of 25 incumbent and alternate operators across 16 European countries, two thirds of operators expect traditional voice services to account for less than 50 per cent of their revenue by 2006.

The primary drivers behind the migration to packet based infrastructures are, according to the analyst firm, lower operating costs - which almost 40 per cent of respondents cited - and new service deployment - which was the considered most important by a third of operators.

Yankee said the move to IP marked a departure for telco operators as it is the first time that they have been forced by customer pressure to provide services.

Chris Lewis, Yankee Group veep, said the change in telecoms is "happening from the street up. This means that operators are increasingly looking first at customer needs and then building a business case to launch a service. This is a major change for the industry that traditionally developed services that the market then followed."

The survey found that, for many operators, converged services are linked to the roll-out of broadband DSL, with almost a quarter of respondents expecting to use broadband as a major launchpad for service development.

The vast majority of operators polled by Yankee - some 83 per cent - are already offering or intending to offer an IP telephony service over the next three years, citing customer demand as the driving force.

Although the study indicates that operators are currently targeting the high end of the business market with convergence offerings, Yankee recommends extending this strategy to small and medium-sized businesses. The firm notes that these customers have fewer in-house resources to develop complex services or manage converged voice and data networks. ®

Reducing security risks from open source software

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*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.