Jupiter Research is predicting that the VoIP market will become the key revenue generator for broadband service pro...
March 17, 2004
Jupiter Research is predicting that the VoIP market will become the key revenue generator for broadband service providers by 2009, contributing to an overall value-added services market of US$47 billion.
This will be in addition to the US$43 billion spent on broadband access in the same period.
“Broadband penetration has now grown to a level where the industry is on the verge of a revolution, as it is now economically attractive to launch value-added services to a mass audience,” said Ian Cox, broadband specialist at Juniper.
“The challenge to service providers will be to provision these new services as cost effectively as possible as traditional revenue streams from existing fixed-line voice services continue to decline.
“Flat-rate IP based voice tariffs will gradually replace time and distance related tariffs. These declines may, to a certain extent, be off-set by a reduction in operating costs for converged networks.”
Although much attention has been paid to the more complex and ‘sexy’ value-added services like video-on-demand and on-line games, it appears that the biggest opportunity will be in voice services as broadband IP-voice takes over from traditional circuit-switched voice; driven by lower operating costs and competition between incumbents and new licensed operators, the company said.
According to the U.K. research firm, service providers need to take advantage of the opportunity provided by broadband value-added services to protect their profitability and move as quickly as possible to a converged network.