Feeds

VoIP's gonna be huge

And don't telcos know it

The smart choice: opportunity from uncertainty

VoIP is going to be massive. The effects of internet telephony are touching technology, business, culture, geographic penetration and consumer expectations in a way that is certain to turn the telecoms industry on its head.

So says Benny Last, MD of telco IDT Europe. Earlier this week he spoke about the impact of VoIP (Voice over Internet Protocol) on the global telecoms industry.

He told delegates at the Carriers Conference in London that traditional voice providers "will need to make additions to their service offerings beyond voice" if they want to continue to compete in this new telco world order.

"Enhanced offerings will include Internet broadband access, media, IPTV [TV over the internet], online gaming, messaging...as well as 'next gen' services. They must enhance their service offerings because that is precisely what VoIP makes possible," he said.

With VoIP operators springing up all over the place effectively piggybacking on broadband networks, traditional telcos will have to adapt or risk losing out.

"Traditional voice providers will need to get more creative with pricing models as voice becomes one service offering among many," he said.

"Bundled pricing is likely to predominate. In addition, minutes and distance as factors in pricing will become more and more foreign to consumers accustomed to IP networks...who will expect to pay for access to services, and then pay incrementally for frills."

He went on: "VoIP is here, and it is not going away. We are in the midst of an explosive change in the way people use technology.

"While the size of VoIP traffic and underlying service provider networks may currently be modest, and the industry refers to VoIP deployment as 'evolutionary' rather than 'revolutionary', VoIP is acquiring significant mindshare all over the world," he said.

Last's assessment of the future of VoIP comes as a separate piece of research claims that the world's largest telcos are increasingly hopping on the VoIP bandwagon. The main reason is the fear of losing punters and seeing a drop in revenues, according to research from Heavy Reading.

More than 170 telcos including BT, AT&T and Verizon were quizzed as part of the research, which predicts a surge in VoIP traffic over the next two years.

"The single biggest reason for deploying VOIP is fear that traffic would otherwise migrate to competitors' networks," said Graham Finnie a senior analyst at Heavy Reading. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.