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Asia International Call Revenue Lost to VoIP Bypass Declines in 2005
INSIGHT Research says Asian carriers will be losing less revenue next year from VoIP bypass.
BY JOHANNE TORRES
TMCnet VoIP Minute Watch Columnist
According to a research study conducted by INSIGHT Research, Asian carriers will be losing less revenue next year from Voice over the Internet Protocol (VoIP) bypass. The firm�s analysts revealed that international voice telecommunications revenue lost to VoIP bypass is gradually declining, even as total international calling continues to increase. The study found that as Asian telecommunications companies bring their international rates into line with actual costs, the attractiveness of VoIP as an arbitrage opportunity will diminish, slowing down its adoption.
The market analysis study titled Telecommunications and VoIP in Asia, Oceania, and the Mideast: A Market Perspective on the Major Economies 2005-2011, during 2004, VoIP bypass calling revenue amounted to slightly more than one-third of the $98 billion spent in China, India, Japan and other Asian countries on international calling. Experts concluded that by 2011, VoIP bypass revenue is expected to remain essentially flat at $30 billion while international call revenue jumps to about $160 billion. Of the 96 billion Asian international calling MOUs expected to be recorded in 2011, only 22.8 billion will be attributable to VoIP, the study revealed.
"Once international settlements are in line with the real costs to deliver service, the arbitrage opportunity becomes less compelling, VoIP growth rates slow and actually become a smaller percentage of all international calls," says INSIGHT president Robert Rosenberg. "Take India as just one example: in 2004, international call revenue amounted to $2.7 billion, of which $1.5 billion was lost to VoIP bypass. In 2011, we expect total international voice to generate $4.5 billion in revenue, with VoIP bypass taking a far smaller percentage," concluded Rosenberg.
Another study titled Telecommunications and VoIP in Asia, Oceania, and the Mideast: A Market Perspective on the Major Economies 2005-2011, on the other hand, forecasts access line growth and wireless subscriber growth, analyzes data on MOUs related to international circuit switched voice and VoIP-based traffic, and forecasts VoIP MOUs and revenue per subscriber. VoIP's impact on capital investment in hardware and software is also quantified. The results were reached by assembling info provided by major economies in Asia, the Mid-East and Oceania including: China, India, Japan, South Korea, Israel, and Australia.
INSIGHT Research
www.insight-corp.com
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Johanne Torres is contributing editor for TMCnet. To see more articles by Johanne Torres, please visit:
http://www.tmcnet.com/tmcnet/columnists/columnist.aspx?id=100006&nm=Johanne%
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