According to the latest research from IDC, the overall market for telecommunications network services is set to grow by an estimated 4% during 2004. Linked to growth in IP VPNs and broadband will be growth in the use of IP voice solutions, particularly in the enterprise market. Service providers are now evolving IP voice portfolios in order to attract more of the value-added enterprise business.
About 60,000 have decided to make the all-wireless leap since new federal rules took effect Nov. 24, according to confidential figures gathered by The Associated Press. Before the new rules took effect, an estimated 3% of the nation’s cell phone subscribers, about 4.5 million people, said they had no wired phone service, according to an October survey by the Pew Internet & American Life Project.
VoIP will continue to be the sweetspot of next-generation networks. It will double every year over the next four years from $14.3 million in 2003 to $288 million by 2007. The study also shows the government, education and healthcare sectors would see the highest implementation of self-implemented IP telephony, he said. About 13.9% of companies interviewed in this space were currently using the technology. Globally, there are a host of voice-over-broadband (VoBB) technologies including offerings from SIPphone, Vonage, deltathree, Yahoo BB Phone, Skype and DOCSIS 1.1 or 2.0.
The General Accounting Office said the new providers are offering competition to existing telephone and cable operators, but few customers get the benefits because they operate only in a few cities. In addition, because of problems raising money and signing up customers, the long-term viability of these providers is not clear. Residents in five municipalities paid at least 15% less for expanded basic cable TV than customers in similar cities without similar competition. Residents in four municipalities paid at least 4% less for telephone service. Residents in three municipalities paid at least 20% less for high-speed Internet service.
According to IDC, worldwide telecom services spending will surpass the $1 trillion mark for the first time this year, helping the industry to re-establish its momentum after several years of slow growth. 2004 spending in the segment will be 4.4% greater than in 2003 and will enjoy a compound annual growth rate (CAGR) of 4.7% from 2003 to 2007, IDC said.
The worldwide market for
Professional Video-over-Internet Protocol (IP) services will top $2.2
Billion (US) during 2007, exhibiting a powerful Compound Annual Growth
Rate of 45.3% between 2003 and 2007, according to In-Stat/MDR. The high-tech market research firm finds that
two key segments will drive strong growth: Live Two-Way Video for
Interactive Communications and Live One-Way Video for Information
Distribution. During 2003, these two “live” categories, combined, only
account for 17.3% of the total market. However, by 2007, they will hold
a 42% share of the worldwide market for all Professional Video-over-IP
The nation’s largest long-distance carriers have raised their basic rates by an average of more than 55% during the past four years, socking consumers who haven’t signed up for special calling plans, says a report by Consumer Action, a consumer watchdog group. In addition, phone companies have also quietly raised the price of collect and calling cards. MCI has increased the rate for a 10-minute calling card call to $14.25, up 25% in just the past year. And Sprint charges $14.89 for a 10-minute collect call, up 16% from a year ago.
The worldwide router market will grow 6% over the next five years, while optical transport and mobility infrastructure won’t see significant growth until 2005, according to Dell’Oro Group. In a set of five-year forecasts, Dell’Oro said the router market will grow from $6.3 billion in 2003 to $8.6 billion in 2008. The second half of 2003 was the “turning point” for the market, which had experienced declining sales for several years, Dell’Oro states.
The IDC Israel research company predicts that Israeli international telephone operators? revenue will plunge 14.8% in 2004. A study by IDC Israel research director Gideon Lopez indicates that the international carriers had $226.9 million in revenue from calls in 2003, down 4.6% from 2002. Lopez states that the decline this year will be steeper, amounting to a $194 million drop, following the opening of the international calls market to competition.
The study found that overseas call minutes from Israel totaled 1.06 billion in 2003, 8.5% less than in 2002. IDC Israel predicts that the number of overseas calls will rise 1.2% in 2004, despite the expected fall in revenue, indicating that lower prices and the entry of new companies, which will take market shares away from the existing companies, will be the cause of the revenue loss.
Telephone companies could cut their operating costs by 23% a year by using Ethernet services in their metropolitan area networks instead of traditional telecommunications services, according to a new study. The study, scheduled to be released Monday, found that carriers could reduce their operational costs by 18% during the first year of a three-year network implementation. The potential savings rise to 20% in the second year and roughly 24% in the third year, according to the study, which was commissioned by the Metro Ethernet Forum, a marketing group made up of equipment vendors and service providers.