IP set to 'overwhelm everything'

Internet protocol (IP) is set to overwhelm every other technology in the telephony market, according to US telco giant AT&T.

Bill Archer, EMEA president of AT&T, said that technology and business were converging around Voice over IP (VoIP), which will become the dominant force in the telephony market.

"IP is going to overwhelm everything," he said.

Archer said that for any new technology to succeed it must be supported by developments in overlapping business areas, and cited three factors boosting the VoIP market.

"Firstly there's the maturation and availability of [MultiProtocol Label Switching] MPLS-over-IP platforms. Secondly we've seen an explosion in access to functional, economical devices for end-point providers like resellers," he said.

"Finally, set standards mean VoIP isn't an experimental but a deployable service; standards like 802.3af [Power over Ethernet] make installing a VoIP phone network much easier."

But Archer warned that, overall, the telecoms market has still not overcome its problems of overcapacity, and that companies are still very conservative with spending plans.

Ian Stevenson, service director at analyst Ovum, added: "To be honest there has been some increase in spending and venture capitalists are looking at investments again.

"It's not that there's nothing there to spend, it's just that people are being more realistic about projects."