8el
VoIP and Data Solutions
Home → News → VoIP News → VoIP a 'permanent threat to landline communications'
VoIP a 'permanent threat to landline communications'
Voice over internet protocol (VoIP) is set to become a permanent threat to traditional landline communications, is has been suggested.
Patrick Christian, senior analyst at telecommunications research company TeleGeography, says that VoIP is currently providing a very real threat to the continuation of international landline telephone carriers, in terms of siphoning away customers from this form of communication.
In fact, he anticipates that VoIP uptake will increase on such a grand scale that the medium will terminate a total of 30 billion minutes worth of calls that would usually be spent on traditional fixed-line networks in the coming years.
He adds that the popularity of VoIP and the "immense traffic volumes"; that are being drawn away from telephone companies show that the growth of the technology is set to be at the expense of traditional carriers.
Mr Christian's comments come in response to recent findings from TeleGeography, which revealed that over the past 25 years, international call volume from telephones has grown at an annual rate of 15 per cent.
However, since the introduction of the increasingly popular VoIP, this growth has been seen to slow to just eight per cent annually.
And predictions from business advisory firm Deloitte could spell further trouble for traditional landline carriers.
The company has forecast that the telecommunications industry could see a huge change occur during 2010 as VoIP is set to evolve from a niche to mainstream product by the end of the year.
As a result, the medium is expected to be utilised by tens of millions of broadband users by December 2010.
Market research company IbisWorld reported at the end of 2009 that VoIP technology has been the "industry of the decade" and is set to enjoy continued growth over the next ten years.
The group found that the industry saw a monumental 1,655 per cent increase in revenue growth in the period up until 2009, after starting from a zero base rate in 2002.
Furthermore, the company stated that VoIP is expected to enjoy a revenue growth of a further 150 per cent by 2019.
"We forecast SIP trunking service revenue to hit an 89 per cent compound annual growth rate from 2008 to 2013," Diane Myers, Infonetics analyst, added.
It could be that this huge growth is attributable to the cost-saving benefits of the medium, which could prove to be particularly useful to businesses during the worldwide economic downturn.
Frost and Sullivan recently stated in its World Enterprise and Telephony Platform Markets report that the cost-efficiency benefits that VoIP offers are "too large to ignore".
It would certainly seem that both businesses and consumers have taken note of this advice and if more continue to do so, could it spell the end for the traditional fixed-line telephone service?
If you would like more information on 8el's networking solution, please call our sales team on 0118 338 3062 or email info@8el.com.
About Us