OTT VoIP to cost telecoms industry USD 479 bln by 2020

Monday 29 October 2012 | 10:32 CET | News
While over-the-top (OTT) VoIP services are not about to replace traditional telephony, they will have a marked impact on telcos' revenues over the next eight years, according to Ovum. Forecasts from the analyst firm say that OTT VoIP will cost the global telecoms industry USD 479 billion in lost cumulative revenues by 2020, which represents 6.9 percent of cumulative total voice revenues. New research into the 'Future of Voice' suggests that although revenues continue to fall, voice traffic is shifting rather than collapsing.

Carefully targeted price increases are expected to be commonplace as operators try to maintain their revenues and Ovum believes that a focus on creating cloud-oriented telephony apps, and efforts to maintain the relevance of telephone numbers, will ensure operators have a place in the future communications landscape. The complete collapse of telephone revenues is not likely, according to Ovum but the long-term trend is towards richer and more complex communications environment in which voice services a different function and telephony plays a smaller role.

Ovum's research shows that users have been heavily influenced by their experiences with OTT players' services and now expect traditional operators to provide content, relationships and history with a service, irrespective of device or access method. Ovum also sees the continued existence of the telephone number as a key asset for telcos.

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