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To: Scottoo who wrote (11810)6/8/1998 3:21:00 PM
From: Rick Jamison  Read Replies (2) | Respond to of 50264
 
Here's another piece to your puzzle Rocketeer1. The picture is getting clearer.

Internet Telephony Services Challenge
Telecom Industry - IDC

June 8, 1998

LONDON, ENGLAND, Newsbytes via NewsEdge Corporation : In a report released this
morning by International Data Corp. (IDC), the information technology (IT) research firm
says that the arrival of new and low cost Internet telephony services are starting to
challenge the conventional telecommunications carriers.

As a result of this, IDC says, there is a need for the carriers to respond, especially in
Europe, where telecommunications costs are higher than in the competitive US
marketplace.

IDC notes that the high level of interest in Net telephony is unsurprising given the
potential of the technology -- both to allow new players to enter the market for basic
telephony and also to enable new value-added applications using the convergence of
telephony with the Internet.

In the US, IDC notes, a number of next-generation telecommunication carriers are
already challenging the traditional carriers with low cost Internet telephony services.

In Europe, on the other hand, barely six months ago there had been little activity in the
area of public IP (Internet Protocol) telephony services beyond the testing of the
technology and one or two public trials by carriers such as Deutsche Telekom and
Telecom Finland.

"The situation is now changing with a small number of commercial services up and
running from next-generation telcos and Internet telephony service providers (ITSPs)
such as Delta Three, Glocalnet, and POPTEL, while a number of Internet service
providers (ISPs) are also planning to launch services within the next few months,"
explained Scott Moore, a research analyst with IDC's European Telecommunications
Services.

"However, the clearest signs yet of the adoption of Internet telephony in Europe have
been the announcements by Deutsche Telekom, Swisscom, Telenor, and Telia of the
launch of IP telephony services before the end of 1998," he said.


According to IDC, one of the most significant inhibiting factors to the introduction of
Internet telephony services has been the issue of voice quality.

However, the firm notes, advances in technology and the use of managed networks now
enable operators to offer services with voice quality equal to that of GSM (global
system for mobile communications) cellular services, allowing them to enter price
sensitive sectors of the residential market.

On the other side of the equation, the report says, there are a number of driving factors
for IP telephony. At the moment the most important is cost, which will gradually
disappear as the prices of IP and standard switched telephony converge.


However, IDC says, other drivers will soon emerge, such as the possibility for new
value-added applications.


IDC's Internet Telephony in Europe report (number HT43EB) costs $595 and is billed as
giving a broad overview of the developments in Internet telephony in Europe, with
details of trials and current or planned commercial services.

According to IDC, the report concentrates on the provision of public IP telephony and
fax services over the Internet and managed IP backbones, with profiles of the activities
of carriers, next- generation telcos, ITSPs, and ISPs in the emerging market.