North American Voice Services
Market To Reach 128 Million Users
The Kelsey Group has projected that the North American
market for voice services will reach 128 million users
by 2005, and 45 million of those will be regular users
of voice portal applications. Deployment of speech
recognition and a wide range of voice-enabled services
will offer cost savings, leading to customer retention.
Allied Business Intelligence has also projected there
will be 56 million mobile voice portal users in North
America by the end of 2005, who will access 250,000
voice-enabled Web sites, contributing to a $50 billion
v-commerce market.
Cooperative Suppliers Will Profit
From Projected $29 Billion Wireless Enterprise Market
Once suppliers put aside their varying interests and
work together, they will benefit from a wireless
enterprise market projected to reach $29 billion by
2006, according to Ovum. Suppliers have focused on the
consumer market and "fun" hobbyist services, but should
capitalize on the burgeoning corporate sector to reap
the benefits of this market. Suppliers should cooperate
to create a range of mobility solutions for access to
various types of applications, through various access
methods, according to the Ovum report.
Residential Gateway Market To Be
Driven By Enhanced Services
An Allied Business Intelligence report projects the
residential gateway equipment market will grow from $267
million in 2000 to $7.1 billion in annual revenue by
2006. The growth will be fueled by service providers who
enable enhanced services and applications to be
delivered to the home. North America will account for 74
percent of all gateway shipments initially, while Europe
and the Asia-Pacific region will reduce North America's
share to 44 percent by 2006. Europe will also contribute
to a more than 40 percent share of utility-centric
gateway shipments.
Enterprise ASP Spending On The
Rise
IDC is forecasting that enterprise customers will spend
more than $13 billion annually on hosted services by
2005, up from the $693.5 million they spent in 2000. The
US currently represents the largest opportunity for
enterprise ASP spending, although Western Europe is
expected to increase its spending in this space from
$74.4 million in 2000 to $5.1 billion by 2005. Shortages
of skilled IT personnel as well as increased awareness
of the ASP business model are expected to fuel growth,
according to IDC.
Wireless Handhelds Are Target
Devices For Convergence
As communication and information services converge and
mobile applications become prevalent, the wireless
handheld will be the target device for delivering
next-generation phone features, according to Cahners
In-Stat Group. "With relatively modest form factor
adaptations, wireless handsets will be the standard,
single-handed use, mobile personal area network (m-PAN)
form factor," said Brenda Sky, industry analyst for
Cahners. The study also found that PDAs, palmtops, and
entertainment choices will merge functionality into
better handheld units with wireless voice capability,
and that the wireless mobility space is already growing
out of traditional fixed line environments.
Service Provider Infrastructure
Spending To Rise
The total market for infrastructure purchases by service
providers will grow from $88 billion in 2000 to $212
billion by 2005, according to IDC. Network equipment,
including most communications and networking hardware
required for carrier-grade networks, will lead the
increase in purchases. Other items will include servers,
services for building, integrating, installing, and
developing infrastructure, software to manage and run
networks, and storage devices like storage-attached
networks or network-attached storage.
Study Analyzes Wireless And Data
Impact on ILECs
A report sponsored by Technology Futures, Inc. measures
the impact wireless services, high-speed data access,
and other competitive technologies will have on the ILEC
market. The report was sponsored by the
Telecommunications Technology Forecasting Group, a
consortium of ILECs. Competition from wireless and other
forms of access could lower the number of ILEC
narrowband access lines by 25 percent by 2005, according
to the report. It also finds that wireless and other
communications services like IP voice could displace up
to 50 percent of ILECs' revenue-generating voice usage.
The report also boldly predicts that narrowband
switching equipment has a remaining life of only four to
five years, based on competition and technological
advancements.
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