VoIP will prove inevitable
14 January 2008
While the VoIP market is still at an early stage, it is becoming more prevalent in the Asia-Pacific region. We are seeing more operators launching VoIP, primarily as a means of challenging the public switched telecommunications network (PSTN) dominance of the incumbents.
Growth in broadband penetration is necessary for VoIP to develop, but it is not sufficient. New fixed operators are driving VoIP uptake in most markets, as they implement triple-play strategies (voice, data and content services) to compete with incumbents. Most incumbents are taking a defensive position, cutting PSTN prices and strengthening their content offerings.
Overall, we are seeing incumbents’ and challengers’ strategies starting to converge on a triple-play model. VoIP is giving smaller fixed challengers the opportunity to build up true triple-play offers without having to rely on resale of incumbent wholesale services, and to exploit IP technology to do so at lower cost. This is giving more price flexibility to challengers and allowing them to compete on a more even footing.
While the VoIP market is still at an early stage, it is becoming more prevalent in the Asia-Pacific region. We are seeing more operators launching VoIP, primarily as a means of challenging the public switched telecommunications network (PSTN) dominance of the incumbents.
Growth in broadband penetration is necessary for VoIP to develop, but it is not sufficient. New fixed operators are driving VoIP uptake in most markets, as they implement triple-play strategies (voice, data and content services) to compete with incumbents. Most incumbents are taking a defensive position, cutting PSTN prices and strengthening their content offerings.
Overall, we are seeing incumbents’ and challengers’ strategies starting to converge on a triple-play model. VoIP is giving smaller fixed challengers the opportunity to build up true triple-play offers without having to rely on resale of incumbent wholesale services, and to exploit IP technology to do so at lower cost. This is giving more price flexibility to challengers and allowing them to compete on a more even footing.
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