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Johanne Torres[October 15, 2004]

Convergence Will Drop Telecom Spending, Study Says


According to a recent study conducted by Irish firm Research and Markets, new developments in voice technologies such as VoIP will converge with traditional telecom services and result in telecommunications cost reduction by at least 80 percent.

The experts say specifically that the junction of analogue voice, mobile voice and VoIP, as well as IP and broadband technologies could create a beneficial situation for customers providing them with significant savings in telecommunication spending. The study says this universal convergence will eventually enable providers to benefit from new opportunities that would increase Average Revenue per User (ARPU).

The study also says that convergence will open up new opportunities for providers to develop enhanced voice services such as premium voice services, based on more intuitive navigation, CD-sound quality and interactivity between handset and TV, therefore combining voice with video and creating new voice markets.

Experts calls VoIP a very potent weapon that can be used by the ISPs and BSPs. “However, the other vertically-integrated competitors are more than happy to keep prices as high as possible, as they are all enjoying a comfortable wholesale ride on the incumbent's high fixed-voice margins.”

The report further discusses the VoIP market with industry analysis and an overview of its development in the U.S. and Japan. Experts present their research on fixed-mobile convergence, cheaper calls, new IT applications, voice, data, and video convergence, VPN, and IP networks.

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 [email protected]

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