The use of the internet to make telephone calls is set to rise in Western Europe, as internet service providers (ISPs) will increasingly seek to offer IP telephony to their customers (IP stands for internet protocol).
This is according to a new report from
IDC, which forecasts that user spending on IP telephony services in Western Europe will reach $2.4 billion in 2006. This compares to spend of $150 million in 2001 and represents a CAGR (compound annual growth rate) of 74% over the 2001-2006 period.
“Revenue from international calls represented the highest portion of total IP Telephony revenue in 2001, as this is the area where most significant cost savings can be offered to users. However, by 2006 IDC estimates that the situation will have changed significantly, given that long distance call tariffs will have declined and revenue from enhanced services will represent the majority (54%) of the total,” says the report.
Such enhanced services may include messaging and conferencing at the low end and call center services at the high end, says IDC.
