Broadband talks the talk
Published: 14 Apr 2004 11:50 BST
So you have a data network and a voice network. At some point you can see the sense in combining the two -- the simplicities of management and extra functionality are worth considering.
But despite some obvious benefits of convergence, technologies such as Voice over IP (VoIP) are still in their infancy when it comes to the UK market. Japan, meanwhile, has taken to the idea with more enthusiasm, according to a recent study by researchers at Brunel University's Broadband Research Centre.
And Japan is not alone in its zealous approach to voice and data convergence. Market watchers expect a huge explosion in the global take-up of VoIP-broadband in the next few years. Juniper research predicts VoIP will be the key revenue generator for broadband service providers by 2009. In 2004, the analyst group expects a record $2.48bn (£1.38bn) to be spent on VoIP in the residential sector, rising to $6.36bn by 2009. Business spending on VoIP meanwhile is predicted to grow from a modest global $1bn this year to $9.5bn within five years.
Why that big discrepancy on VoIP over broadband between consumer and business? It turns out that US consumers are already quite happy to use broadband-based voice services, whereas UK residential customers haven't been flocking to converged solutions yet, although there are products on the market -- even from BT -- though the firm is a bit iffy about when it will introduce a business version.
Another recent study, from telecom watchers Analysys, forecast the market for broadband VoIP will be only €1.3bn in 2007, with small businesses predominating.
"The killer app for broadband is Internet access, not voice. But that doesn't mean it can't be used as a way to make calls," notes Paul Renucci, managing director of Damovo, formerly the services arm of Ericsson Enterprises. The company provides voice and data support, including converged networks, for public sector and government installations, such as the BBC and Metropolitan Police.
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