Market research company Ovum believes the threat to traditional telcos from IP telephony has been much exaggerated.
According to Ovum's latest survey, IP based voice, fax and data services will impact telcos' revenues - but not as significantly as predicted. The researchers believe IP service vendors are now focusing their efforts on the lucrative outbound international traffic market.
Stewart Anderson, author of the report - 'IP: The impact on telco services and revenues - said: "At the moment, the main IP services are Web access for information and email. Although video and ecommerce are much talked about, the actual impact on telco revenues from these areas will be minimal. The main threat to telco revenues will be as result of other IP based network operators taking voice and fax traffic from the telco circuit switched network."
IP telephony services are forecast to carry up to $1 billion of international traffic by 2005, assuming a decline in overseas tariffs during this time, caculates the report. At the same time, telcos are expected to grow their international IP telephony services to $900 million.
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