IP Telephony to Drive the Open Communications Revolution, According to Piper
[.19835]
/FROM PR NEWSWIRE MINNEAPOLIS 612-331-7800/
TO BUSINESS EDITOR:
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.
"IP telephony is too often considered a technology that merely allows
individuals to save money on long-distance at the expense of voice quality,"
Jackson said. "But IP telephony goes much deeper than rate arbitrage. Some
call it an industry; we call it the driver of an industry. IP telephony is the
technology driving a lifetime revolution in the communications industry that
will enable the most intelligent, feature-rich, low cost and all-encompassing
network to emerge. With the Internet now a viable means for business and
recreational use, the addition of communications to Internet opens the doors
to an entirely new communications frontier. It is this new frontier that will
usher in revolutionary new services to enhance our every day communication
needs and those we cannot yet imagine."
Please contact your Piper Jaffray representative for a copy of the report.
Members of the media may also receive the report by calling 612-342-6594.
Piper Jaffray Inc., founded in 1895, has built a reputation as one of the
nation's premier financial services firms by providing investment advice and
services to businesses, institutions and individuals. Piper Jaffray's
investment banking business has grown exponentially in the last several years
by focusing on the needs of emerging growth companies in the health care,
technology, financial institutions, consumer and industrial growth sectors.
Piper Jaffray has a national reputation for its expertise in equity and debt
financing. Securities products and services are offered through Piper Jaffray
Inc., member SIPC and NYSE, Inc., a subsidiary of U.S. Bancorp (NYSE: USB).
Through U.S. Bank, Piper Jaffray clients can access a full range of commercial
and retail banking products. For more information, visit our Web site at
piperjaffray.com
Nondeposit investment products are not insured by the FDIC, are not
deposits or other obligations of or guaranteed by the U.S. Bank National
Association or its affiliates, and involve investment risks, including
possible loss of the principal amount invested.
SOURCE Piper Jaffray Inc.
/CONTACT: Elizabeth Child of Piper Jaffray Inc., 612-342-6594/
/Web site: piperjaffray.com
Feb-08-1999 10:10 GMT
Symbols:
US;USB
Source PRN PR NewsWire
Categories:
NWR/MN NWI/FIN NWI/CPR NWI/MLM NWI/TLS |
