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New batch of IP-enabled services will generate billions for telcos, says Insight

An array of new Internet-enabled communications services geared to the needs of consumers is expected to generate n...


October 31, 2006  


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An array of new Internet-enabled communications services geared to the needs of consumers is expected to generate nearly US$265 billion for phone companies and other telecommunications carriers worldwide over the next five years, according to a new market research study from The Insight Research Corp.

These new Internet-enabled services include residential video telephony, fixed-mobile convergence, file sharing services, streaming services, location-based services and presence-based services.

Insight Research’s market analysis study, entitled “IP-Based Application Services Market 2006-2011,” notes that wireless and mobile telecommunications carriers seem to be making the most headway when it comes to offering these new services, mainly because they tend to have greatest amount of control over the content in their networks as well as more flexible billing platforms.

Wireline carriers expect operational and infrastructure savings by deploying the new IP-based services, and are initially choosing to rollout the new services as an overlay on their existing network.

“These new IP-enabled services are the first tangible fruits of next-generation networking,” says Robert Rosenberg, president of Insight.

“However, the actual revenue contributions made by all of our IP services represent just 0.9% of all global wireline and wireless telecommunication service revenues forecasted for 2006 and just 5.7% of those forecasted for 2011.

“Thus, while these services do indeed represent the forward edge of service delivery, their revenue impacts remain modest throughout our forecast period.”