GartnerGroup's Dataquest Says Global Voice over IP Services Revenue to Top $20 Billion by 2003
Traditional Telecom Will Figure Prominently in the 'Packetized Future'
Egham, England, June 29, 1999—Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT) today announced its new forecasts for voice services over packet-based carrier infrastructure, predicting that the market will grow from $763 million in 1998 to more than $49 billion by 2003. Voice over IP, which accounted for just over $255 million in 1998, will grow to a global market of more than $21 billion by 2003.
The first industry quantitative analysis of the worldwide use of Internet protocol by service providers, including the study of voice over IP, voice over frame relay, voice over ATM and value-added services, also indicates that service providers will have to rely heavily on value-added services in the future in order to be profitable. Dataquest has identified fax, unified messaging, and multicast services as the leading services that operators should concentrate on, in addition to basic voice services.
"Tariffs of traditional PSTN calls will continue their dramatic decrease, and packetized voice service providers will have to offer a great deal more than just basic calls to add value to their portfolios and increase their revenue per minute," said Bhawani Shankar, senior industry analyst for Dataquest's Voice Over Packet Networks Worldwide program. "Leading international PTOs will be among those to take advantage of the increased operational efficiencies of IP-based voice, and we expect some of the largest packet network deployments to come from traditional operators."
The Voice over Packet Networks Worldwide research program is the first global initiative to fully investigate the continuing shift of voice traffic from the traditional circuit-switched infrastructure to the newer, packet-based public networks. "Positioning of IP voice is key not only to an operator's success, but also to the preservation and growth of existing markets," said John Lilley, program manager for Dataquest's Voice over Packet Networks Worldwide program.
Dataquest's Voice over Packet Networks Worldwide program provides comprehensive market sizing on how this fundamental change in the telecommunications market will impact existing voice services and create new business opportunities. It also advises existing telecom operators and next-generation carriers on best practices in this rapidly developing market area. Additional information on this program is available on Dataquest's Web site at http://www.dataquest.com/dq/static/offer/programs/vopnwwds19990201.html.
To subscribe to this program, please call 800-419-DATA or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.
GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com.
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