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VoIP market key to future growth for telcos: Probe

VoIP growth is critical for the future of the telecom industry and the challenges it raises in terms of business mo...


October 4, 2004  


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VoIP growth is critical for the future of the telecom industry and the challenges it raises in terms of business models and pricing must be addressed by the service provider industry, a telecom research analyst says.

“VoIP growth will be substantial in all regions, but regional differences in competition, broadband access and pricing will dictate different growth paths for the service,” said Allan Tumolillo, COO of Probe Financial Associates based in Cedar Knolls, N.J.

“In North America, VoIP is associated mainly with broadband access which has seen substantial growth, but in other regions with weak broadband infrastructure deployments, VoIP may be associated with evolution of the incumbent telcos’ Class 5 equipment”

Tumolillo added that VoIP raises numerous challenges to service providers as pricing has been at least 50% lower than traditional landline voice, distribution channels are profoundly different for VoIP than for traditional voice, and ‘owning the access platform’ is not a guarantee of owning the customer.”