Voice over Internet Protocol (VoIP) has more than 120 million subscribers worldwide. The VoIP market is set to accelerate to generate $40 billion annual revenue by 2015, according to research by Point Topic.
VoIP market grew 12.6 percent during 2010. There are more opportunities left for VoIP around the world.
“The growth of VoIP has been bumpy but shows signs of acceleration. VoIP has all the hallmarks of a classic substitution commodity,” said John Bosnell, senior analyst at Point Topic statement.
“This is where customers look at the service that is delivered by a new product and decide that it meets, or exceeds, the service they are currently receiving and when it is appropriately priced they will switch from one to the other,” Bosnell added.
Consumers are switching from the standard telephone system to an end to end IP service that provides voice services at attractive cost and adds other possibilities.
“France has been something of a test bed for VoIP. Driven by an active supplier base that has made VoIP available to a large percentage of the population over the last decade, providers have been rewarded with significant take-up,” added Bosnell.
By 2010, more than 50 percent of telephony traffic originating on fixed networks was started on a VoIP phone in France.
According to Point Topics, industry should treat any projections about the size and value of the VoIP market with caution. At this stage in the development of a market there are many variables that forecasting models can easily be off by a significant margin.
Recently, a TMCnet report said threatened with growing wireline revenue and customer losses, the major telcos have begun to deploy networks with a view to providing VoIP in a triple play bundle. The future of mobile VoIP is also looking promising, the report said.
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Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.
Edited by Jennifer Russell