Making the Case for VoIP

Why deploy VoIP?

Over the next decade, an immense opportunity awaits those that have the foresight to capitalize on the telecommunications industry technology migration toward a singe converged voice and data network. The technology shift will allow voice to travel on data networks. According to Frost & Sullivan, Voice-over-Internet Protocol (VoIP) will account for approximately 75% of world voice services by 2007. This is staggering when considering that in 2002, world-wide total voice revenue was more than US $1 trillion.

VoIP technology reduces the telephone company’s cost structure. More important than that, this technology makes it possible for data network providers to offer telephone services to their consumers. The industry structure will dramatically change and in that lays the opportunity.

The need for VoIP Services

At the basis of this opportunity lies the fundamental need for low cost communication alternatives. The need to bring together family, friends and business communities is increasing rapidly. Family members and friends move frequently to different countries to go to school, work and retire. The trend for home workers is continuing to grow, as companies continue to control costs by downsizing or keeping workers remote.

The cost of regional long-distance in many countries across the world has decreased drastically over the last decade, but international rates especially for evenings and weekends are holding. Service Providers offer increasingly confusing long-distance rate plans. Consumers and businesses alike are looking for cheaper and simpler ways to make long-distance calls internationally and regionally.

Extensive deregulations in the telecommunications industry continue to dramatically increase competition. The need to reduce operating costs and increase the attractiveness of service portfolios is growing. Industry consolidation is imminent. Communication convergence is now being propelled by the increasing use of Voice over IP (VoIP) and Video over IP technology in an effort to improve cost structures and service portfolios. Commercially viable IP technology is paving the road for widespread user acceptance of IP telephony and video conferencing solutions. Migration of voice onto the data network is officially under way both in the enterprise and at home.