Telecoms and the 20 years timeframe: It seems we are right Jay!
Europe's shift to VoIP to take 17 years - Forrester
By DeHavilland staff, for TOTAL TELECOM 16 October 2003
VoIP penetration in Western Europe to reach 100% in 2020, says Forrester.
The shift to voice over IP will take 17 years in Western Europe despite industry hype about the technology, according to Forrester Research.
Western European VoIP deployment will grow from 5% of total end-to-end fixed voice traffic in 2006 to 100% in 2020, according to Forrester's new report.
The report, European Incumbent Telcos VoIP Road Map, lays out a time line for the deployment of VoIP across Europe.
The switch from TDM to VoIP will, according to Forrester, be the biggest challenge for incumbent telcos such as BT and Deutsche Telekom over the next 20 years.
TDM is worth E140 billion in Western Europe, and is the biggest money-spinner that incumbent telecommunications firms have.
"A shift to packet voice [VoIP] networks threatens incumbents' pricing model of multiple subscription charges for the same copper line and metered, distance-dependent usage charges," said Forrester senior analyst Lars Godell.
"But contrary to vendor hype, the shift will take 17 years to complete. Such a massive, long-term shift requires telcos to get out of their complacent, short-term mood and respond with an integrated, consistent migration strategy that spans the network and service provider divide."
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