VoIP 'is no longer next generation telephony'
Uptake of voice over internet protocol (VoIP) technology is expected to increase as businesses benefit from growing competition between providers in the sector, a new report has concluded.
According to research carried out by the business advisory firm Grant Thornton, corporate VoIP subscribers increased fourfold over the past two years alone and is likely to grow exponentially in the immediate future as businesses migrate from fixed-line communications solutions.
This will lead the global sector to have as many as 250 million subscribers and generate around £13.5 billion by 2010.
Sarika Patel, head of technology at Grant Thornton, noted: "VoIP is no longer next generation telephony, it is here now and 2008 should see strategic acquisitions of independent software developers and ISPs [internet service providers] by large telcos looking to consolidate their VoIP offerings."
However, the report, which was produced in collaboration with analysts Frost & Sullivan, warned that such growth was dependent upon a number of key concerns first being effectively addressed, namely security encryption issues and quality of service questions.
Once these hurdles are successfully overcome, the next stage of VoiP, internet protocol TV may start being rolled out, the authors added.
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