Internet call waiting, a feature introduced just three years go, now faces serious threats from broadband technologies, according to research from IDC.
Internet call waiting allows users who access the internet via a telephone dial-up line to be alerted when another call is incoming. However, broadband access services, such as DSL, use a separate technology to access the Net, freeing up the original telephone line. For equipment and services providers the main reason for continuing to offer the internet call waiting technology is that revenues can increased for the telcos if a higher proportion of potential calls are completed.
However, despite the uncertainty regarding its long-term future, however, IDC forecasts strong growth for the technology during the next few years. Internet call waiting service revenue in the US residential market will increase from $42.4 million in 2000 to $612.1 million by 2005.
“The future of Internet call waiting is closely linked with broadband technologies,” said William Stofega, analyst for IDC’s Residential Telecommunications Services programme. “Widespread broadband adoption is likely to seriously limit the need for Internet call waiting services in the next few years.”
Service providers view internet call waiting as a part of their migration strategy. It pushes customers up the value chain toward DSL,” Stofega added. “The most important reason they should continue to offer it is because it generates revenue. Besides the monthly subscription fees, internet call waiting generates more revenue for a telco by allowing a higher percentage of calls to be completed.”
