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Johanne Torres[September 30, 2004]

VoIP Will Cash-in BIG, Study Says

BY JOHANNE TORRES


In a recent study conducted by Juniper Research, Voice over IP (VoIP) (define - news - alert - tutorial) services are projected to receive credit for over 12 percent of all telephony service industry revenues in less than five years. The study reveals that by 2009, worldwide VoIP market revenue will soar to more than $32 billion adding on to the global telephony market of $260 billion.


The study forecasts VoIP services revenue to grow up to ten times by 2009. Experts see the technology totally blending with traditional telephone services, resulting in a converged telephonic communication experience—a true desktop telephone system for residential and business adoption.

The catch—developers and providers alike will have to figure out how to make this convergence work effectively, says the report. Experts see providers challenged by aligning different fee schedules such as unlimited flat rate programs against pay-per-long distance call services.

The study even goes as far as introducing a sticky acronym—PoIP. According to researchers, VoIP will eventually become PoIP (Presence over Internet Protocol). These devices will automatically select the most appropriate form of communication for the time and place instead of transmitting over a PSTN as traditional telephony. Presence is the network state of a user's IP phone, PC or PDA.

Juniper assures that in five years VoIP services will become the key offering for providers of broadband services. Experts say that overall, VoIP service revenue will surpass the $47 billion mark by 2009, adding on to the $43 billion in revenue gained from broadband access expenditure.

Johanne Torres is the contributing editor for TMCnet.com and Internet Telephony magazine. Previously, she was the assistant editor for EContent magazine in Connecticut. She can be reached by e-mail at jtorres@tmcnet.com.

Purchase reprints of this article by calling (800) 290-5460 or buy them directly online at http://www.reprintbuyer.com/.

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