Tuesday, May 16, 2006

Traditional Voice Service Revenues Declining

By David Haskin of TechWeb News

In a few years, incumbent telecom operators will no longer earn most of their revenues from traditional Public Switched Telephone Network (PSTN) voice service, according to a study released Tuesday by U.K. market research firm Informa Telecoms & Media.

The precipitous drop in PSTN revenue will be caused by increasing use of voice-over-IP (VoIP), a trend the telecoms will need to continue to capitalize on, the study says. The study predicts a worldwide decrease in revenues from traditional PSTN voice service of about 16.7 percent between the end of 2005 and 2011. That percentage works out to about $100 billion in lost earnings from traditional voice service, the market research firm said.

The full story here.


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