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Industry Research Featured Article

March 12, 2007

Survey Says VoIP Primary Cause of Declining Fixed Line Revenues

About 68 percent of communication executives worldwide believe Voice over Internet Protocol (VoIP) services like Skype (News - Alert) are the main threat to fixed line revenues, according to the latest Oracle-sponsored global Communications industry survey conducted by Economist Intelligence Unit.

Based on insights from 155 telecom executives in 36 countries, the survey warns fixed-line and wireless service providers to build up new revenue streams and continuously search for lucrative opportunities to preempt business decline.
In the survey, over 80 percent of industry executives believe voice calls will drastically decline and will no longer be the major source of revenues for communication carriers within six years. In addition, 60 percent senior executives predict this event will happen faster, within four years.
For communication carriers, the most effective strategy to negate declining voice calls is to introduce new services aside from price changes or marketing initiatives, according to 75 percent of executives in the survey.
“The global communications industry is changing drastically and rapidly. Our survey results illustrate a sense of urgency for fixed-line and wireless service providers to deliver new services for their customers in order to remain competitive,” said Economist Intelligence Unit Global Technology Research Director, Denis McCauley, in a press release.
“With the rapid decline in voice revenues and the reality of an ever changing competitive set, customer service providers must accelerate their development of new revenue opportunities,” added Oracle (News - Alert) Communications Global Business Unit Senior Vice President and General Manager Bhaskar Gorti, in a press release.
Additionally, Overall service packaging like bundled triple-play offerings will be more critical now based on 65 percent of industry executives.
Mergers and acquisitions as a strategic tool will most likely take place in the next two years, according to 51 percent of industry executives.
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