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European IP Telephony Services Revenue Will Exceed $2.5 Billion By 2004

European IP Telephony Services Revenue Will Exceed $2.5 Billion By 2004

According to new figures from IDC the development of new technologies in the telecommunications sector is set to continue with ‘minutes of use’ (MOU) in Western Europe set to rise from 91.5 million per year in 1999 to 47 billion in 2004. During the same period, revenue will rise from $11 million to $2.5 billion, a growth rate of 139%.

“The growth of IP telephony is based on two main drivers” said Eric Owen, research manager for IDC’s European Telecommunications Services program. “In the first half of the forecast period, cost savings on national and international calls will be the principal accelerator. In the second half, value-added services such as conferencing and unified messaging will take over.”

IDC claim that the UK will lead other European countries in revenue from IP telephony, growing from $24 million in 2000 to an estimated $650 million in 2004 although Germany will show the greatest rate of growth, a rise of 188% from $6 million in 2000 to $407 million in 2004.

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