Technology - IP revolution Data beats out voice in networks. " from forbes.com do search and type in "ip telephony" select article: "1. Forbes Digital Tool: Technology - IP revolution Data beats out voice in networks. " 5/18/98 By Jeffrey Young
Telecommunications market will topsy-turvy in the next few years for the simple reason that most telephone traffic of all kinds is going to be delivered over the Internet, or Internet-like networks that make use of the robust Internet protocol (IP) to move everything from your call to the Home Shopping Network to the video on your television.
Internet protocol (IP) is far-and-away the best way to send data around because it is simple, ubiquitous, will work at whatever speed the connection supports, and can go at varying speeds along its route. This last factor is crucial to the swift uptake of the Internet, and the future demise of the phone networks. No longer is a highly specified, highly controlled end-to-end telco-maintained pipe required. IP data works better in that world, but it does just fine in a heterogenous, chaotic, ever-changing network of peers, too. The prime example is the Internet.
Fax and E-mail already start out as data, and get converted into not-quite-as-good signals for the voice world; voice mail is almost always manipulated and stored by a computer. Add web browsing and surfing, and E-commerce as it starts to finally catch on and the world turns upside down. By some estimates as much as three-quarters of all telephone traffic now could already be more easily handled as data. Today it increasingly makes sense to pass everything as data and strip out the voice, which will feed a joint voice/IP gateway equipment market for a while. But then it will all be data from end to end.
Here's how to see what's at stake: Twenty years ago there were 100 million E-mails sent each year, versus 135 billion pieces of first class mail. Last year the two reached parity: about 190 billion each. Many of those E-mail messages would have been voice calls without the Internet. Imagine a minute each, at 15 cents a minute, and that is $20 billion in lost voice revenue due directly to today's data networks. |