Infonetics: Service Providers Seek VoIP for Increased Revenue

A recent study by Infonetics Research said that service providers are looking to VoIP to increase revenue generation as revenue from traditional phone service declines.

According to the study, 83% of the service providers interviewed rated the availability of new applications and services the highest among drivers for adopting VoIP products.

"No longer is VoIP being offered only by specialist providers and VoIP pioneers, but by all types of providers in all regions of the world," said Stéphane Téral, principal analyst at Infonetics for service provider VoIP, IMS and FMC.

Infonetics’ research revealed the following:

• Service providers’ top drivers for deploying VoIP are new applications and services, capex savings and opex savings
• The No. 1 barrier is equipment interoperability
• Service providers expect both incoming and outgoing VoIP traffic to nearly double over the next year, with international long-distance traffic growing the fastest
• SIP is becoming the leading protocol for communication between softswitch/voice application servers and media servers, reaching 100% penetration among respondents by 2007
• The top-rated benefit to deploying IMS-compliant equipment is ease of new service creation
• The top-rated barriers to deploying IMS-compliant equipment are the complexity of multimedia services and the lack of consensus on the definition of IMS architecture
• The top strategies for offering fixed-mobile converged services are using SIP signaling to dual-mode handsets, integrating wireline and mobile services, and using IP core to transport voice between mobile switching centers

Infonetics said its study is based on formal interviews conducted by senior analysts with 24 Asia Pacific, European, Latin and Central American, and North American service providers deploying next-gen voice over the next year, as well as informal discussions with these and other service providers conducted throughout the year. The 129-page study examines the trends, drivers, barriers and implementation plans of these providers, and covers legacy and next-gen voice product expenditures, strategies and challenges, circuit to packet migration, technologies and manufacturers installed and evaluated, and other topics.

Infonetics Research www.infonetics.com

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