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Telcos can profit quickly from SIP technology deployments, study finds

Telecom operators that roll out new services based on next-generation SIP (Session Initiation Protocol) technology...


May 5, 2004  


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Telecom operators that roll out new services based on next-generation SIP (Session Initiation Protocol) technology are likely to recoup their investments and achieve profitability within two to three years of initial deployment, according to a new report released By Heavy Reading, the market research division of Light Reading Inc.

The report, SIP Hosted Services: A Heavy Reading Competitive Analysis, evaluates the carrier business case for launching SIP-based services by estimating the capital and operating expenses involved in service launch and projecting revenues from those services over a five-year period.

The analysis is based on a ROI model developed by report author Margaret Hopkins.

The report, which costs US$3,495, includes a competitive analysis of all the carrier-grade SIP-capable products now on the market.

Product matrices deliver comparisons of 78 SIP platforms from 47 different vendors, including Cisco Systems, Nortel Networks, Lucent Technologies and Alcatel.

“SIP will emerge as the basis for a new, scaleable, flexible worldwide communications network,” the report states.

“Given the strength and breadth of its support among vendors and service providers, SIP will supplant all other technologies to become the linchpin for future integrated multiservice and multimedia communications, bridging both wireline and wireless networks.”

Dozens of vendors now offer SIP-based or SIP-supported platforms, but relatively few of those platforms are truly carrier-grade, it concludes.