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Basingstoke, 21st May 2004: Findings from industry analysts, Juniper Research found that the VoIP market will contribute $32bn, out of a market worth $260bn, by 2009 (some 12% of total telephony revenues).

Ian Cox, Broadband Specialist, said “VoIP brings new revenue generating opportunities to the telephony market, by combining voice services with other IP applications. This will redefine the telephone bringing brand new services, with telephony at its core”. The challenge to service providers will be to carefully manage this convergence, balancing new VoIP revenues against declines in traditional fixed line revenues. Flat-rate IP-based voice tariffs will gradually replace time and distance related tariffs.

Residential Market
The initial residential use of VoIP will be via a ‘PSTN-bypass’ through a PSTN interconnect (this excludes free PC-to-PC or peer-to-peer services, that do not offer PSTN interconnect). However in the longer term voice will be offered as part of a service bundle that includes email, Internet access and video telephony. This will be the fastest growing segment by 2009.
Business Market
For the business user calls using an adaptor will be the largest segment, although significant growth in the IP-PBX and IP-Centrex markets will occur. Calls from IP-VPNs will also grow quickly as enterprises take advantage of network convergence to reduce costs.

Key Messages
· A Lite Touch On Regulation. A balance needs to be established between promoting healthy market competition and ensuring widespread VoIP adoption on a fair and equitable basis. VoIP requires nurturing in the early years as the makets develops.
· Winning IP Service Bundles. The telephone is about to be transformed into a new communications device with voice as one element of its operation. New bundled services operating on single IP networks will help create a vibrant market and eventually improve profitability.
· The Need For Standards. Interoperability between standards such as MGCPdefine , H.323 and SIP will remain key to developing a seamless interworking of IP networks and devices. Vendors and standards organisations need to support the emergence of IP as the converged multi-service network.

White papers and further details of the study ‘Voice over IP and Network Convergence’ can be freely downloaded from Alternatively please contact Michele Ince at, Telephone +44(0)1256 345612.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry surveys.

This press release was distributed by ResponseSource Press Release Wire on behalf of Juniper Research in the following categories: Consumer Technology, Business & Finance, Computing & Telecoms, for more information visit