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VoIP Threatening Traditional Fixed Line Revenues

VoIP Threatening Traditional Fixed Line Revenues

The European communications industry is rebounding, with the internet and a changing mobile environment creating new challenges for service providers and advertisers.

According to the new Communications report from the Organisation for Economic Co-operation and Development (OECD), the growing popularity of Voice over Internet Protocol (VoIP) is threatening the fixed line revenues of traditional carriers, especially for international calls.

The report forecasts that in order to keep up with the technological advances service providers will increasingly offer integrated video, voice and data products in a single service package.

The growing popularity of downloading video from the internet is predicted to result in a reduction in the time that people spend watching free-to-air TV, driving down audience share and advertising revenue for broadcasters and making it harder for public service broadcasters to meet their social policy objectives.

Informa Telecoms and Media estimates total global revenues from games on mobile phones to reach $11.2 billion by 2010, increasing by a massive $8.6 billion from $2.6 billion this year (see Global Mobile Games Revenues To Hit $11.2 Billion By 2010).

The latest estimates from Point Topic suggest that currently over 11 million people use retail VoIP, marking an increase from just over five million in mid-2004 (see Worldwide VoIP Subscribers More Than Double).

Revenues for residential voice over internet protocol (VoIP) in North America are predicted to expand considerably over the next few years, increasing to over $4 billion by 2010, up from $295.1 million in 2004, according to a new report by Frost & Sullivan (see Residential VoIP Revenues Forecast To Increase To Over $4 Billion By 2010).

The research group estimates the number of residential VoIP lines to increase to about 18 million by 2010, up from just 1.5 million in 2004

A study by International Data Corporation (IDC) confirms VoIP’s increase in popularity, predicting that 27 million users will have subscribed by 2009, an increase of 24 million from the 3 million who currently use the technology (see Mixed Outlook For US Advertising Market).

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