IP Telephony to Drive the Open Communications Revolution, According to
Piper Jaffray Study
Investment Banking Firm Expects Spending to
Reach $14.7 Billion on IP Telephony
Solutions and Services by 2003, Driven by the
Adoption of the Technology by Major
Service Providers and Corporations' Need to
Integrate Disparate Networks, Lower
Costs and Offer a Broader List of Enhanced Services
MINNEAPOLIS, Feb. 8 /PRNewswire/ -- Spending
on IP telephony-related software, hardware, products
and services
will reach $14.7 billion by the year 2003, according
to Edward R. Jackson, senior research analyst at
Piper Jaffray Inc.
That's one of the conclusions Jackson draws in ''The
IP Telephony Report -- Driving The Open
Communications
Revolution,'' released this month. The first
comprehensive study of the rapidly emerging IP
telephony industry,
Jackson's report outlines how this spending will
revolutionize the ways in which we communicate for
business and with
each other.
The 170-page document provides an in-depth
examination of six separate areas of the IP telephony
industry: enabling
technology, enterprise solutions, carrier-class
solutions, applications, service providers and
professional end-to-end
services. The report includes projections in each area
for revenue growth, size of the industry opportunity,
business
models and potential catalysts and restraints.
Additionally, the report discusses the technology
behind IP telephony and
the new network architectures upon which these new
communication networks will be built.
Some of the report's most significant findings
include:
-- IP telephony combines the advantages of both the
traditional voice networks with the advantages of the
data
networks. This combination results in the existence
of a single, inter-operable network with quality of
service
(QoS), class of service (CoS), new services and
scalable bandwidth;
-- Traditional service providers are caught in the
middle of a large scale convergence of voice and
data, which
has caused an immediate need for trials and testing
of this new infrastructure. We believe trials will
continue
through 1999, with massive deployments to begin in
2000;
-- The large data/telecom vendors will dominate the
infrastructure market and smaller vendors will
dominate the
applications market. Alternatively, small and new
carriers will be the ''introducers'' of the technology
to the
world, but the large service providers will make this
a mainstream technology. The industry has yet to
reach its
true acceleration phase and, consequently,
significant growth awaits its future;
-- While toll bypass remains the dominant driver of
the industry, eventually the enhanced services will
take over
as the leading driver of the 158 percent blended
growth rate for IP telephony. These enhanced
services include:
Click-N-Call, Internet Call Waiting, Unified
Messaging, Surf-With-Me, Collaboration, and
Conferencing;
-- Minutes of communication services traveling over
IP telephony networks will grow from 70 million
and less
than 0.1 percent of all PSTN minutes in 1997, to
over 70 billion minutes and 6.1 percent of all PSTN
minutes
by 2003;
-- All segments of this industry are projected to grow
at or above a 100 percent compound annual growth
rate
(CAGR) into the year 2003. Leading this growth
wave will be the carrier-class infrastructure market
with a 170
percent CAGR, followed by services at 168 percent,
enhanced services at 125 percent, enterprise
infrastructure
at 93 percent, and enabling technology at 92 percent
over this period. |
