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VoIP Feature Article


March 20, 2006

Juniper Study Reveals VoIP Revenue Success

Cindy Waxer, TMCnet Contributing Editor

Driven by low costs, the Asian market, and promises of enhanced efficiency, a new study by Juniper Research estimates that revenues from VoIP services in the business sector will reach $18 billion by 2010.
According to the study, VoIP providers can thank factors such as the replacement of existing business circuit switched connectivity, the lower cost of calls, massive growth in the Chinese telecom market, the efficiencies of carrying voice and data traffic over one network, and improved business productivity for this future financial windfall.

The Juniper report reveals that the tipping point for the adoption of VoIP by businesses will shortly be reached, but it also illustrates the barriers to adoption resulting from difficulties in network readiness and the regulation of VoIP in some countries. Highlights from the report include:
  • The total business VoIP services market will reach $18 billion per annum by 2010

  • Small business broadband connections will reach 40 million lines by 2010

  • Hosted VoIP business revenues will climb to $7.6 billion by 2010

  • Telecom service provider revenue losses, resulting from businesses moving to VoIP, will amount to $36 billion per annum by 2010

Losses incurred by traditional telecom providers will be exacerbated by the rise of Internet Telephony Service Providers and VoIP Peering Houses

Says the report’s author, Barry Butler: “VoIP has the potential to transform business communications, in terms of call costs, cost of operations and integration with business processes. However, as with other IP-based platforms, VoIP is a disruptive technology which will reshape the business communications service provider community.”

The report provides detailed five-year forecasts for enterprise VoIP, hosted VoIP services, peer-to-peer VoIP, and business broadband connected VoIP across five principal regions of the world, plus the Asian powerhouses of China, India, Japan, Korea and Taiwan.


Cindy Waxer is a Toronto-based freelance journalist specializing in business and technology. She has written for publications including TIME, Fortune Small Business, Business 2.0, Computerworld, Canadian Business, and Workforce Management. To see more of her articles, please visit Cindy Waxer’s columnist page.


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