Archive for the ‘VoIP’ category

India 2009: Over 20 million Class 4 and 5 NGN lines!

February 12, 2009

Carriers in India have already drawn up plans for deployment of more than 14.9 million Class 4 NGN ports and over 4.1 million Class 5 NGN lines, making it one of the top Nextgen Voice markets over the coming few years. In majority of the cases, vendors have already been finalized. The findings came as a major surprise while I was researching the subject. My impression was that VoIP in India was limited to certain small PC-to-Phone offerings only. I started my research some two months back with the intention of finding out why the carriers in India were not serious about NGN voice. I was proven wrong. There are tenders floating all around in the country.

An estimated volume of 1.23 million Class 4 softswitch and gateway ports have already been deployed for commercial use by carriers in India. ZTE is the most deployed platform commanding a market share of over 71%, followed by NSN and Alcatel-Lucent. ZTE maintains the number one share across the market if we consider the volume of equipment in all those projects where vendors have been selected for future deployments.

Among the carriers, BSNL and Tata Communications have implemented VoIP trunking networks relatively earlier. BSNL recently swung into action with two major tenders involving 6.4 million Class 4 and 1 million Class 5 NGN lines. BSNL’s lead in Nextgen Voice network deployment is equally reciprocated by large projects at Bharti Airtel, Reliance Communications, Tata Teleservices and Vodafone.

By 2012 the report projects 18.9 million Class 4 and 17.6 million Class 5 NGN lines to be deployed in carrier networks in India on a cumulative basis, which translates into a revenue opportunity to the tune of $498 million between now and the year 2012. This excludes allied Nextgen Voice Network solutions such as media servers, Session Border Controllers, and enhanced applications platforms.

iLocus: Carrier Nextgen Voice Networks in India. Published 8th December 2008.


31 million business phones by 2012.

February 12, 2009

The IP phone market is going to split into two different paths. One is going to sell lots of business desktop handsets while consumers move into “media phones.”

In-stat predicts that 31 million “voice-centric” business phones will be shipped in 2012, with corded IP phones remaining the standard.  Wireless LAN and IP DECT phones will also continue to grow within certain vertical and geographic markets, says the company.

The prediction flies in the face of more aggressive projections by FMC/mobile UC vendors such as Divitas Networks and OnRelay, who believe era of the business handset is ending and being displaced by the prolific use of personal cellular phones in the workplace. On the consumer side, the dull voice-centric IP phone is going to be “subjugated” by flashy IP media phones being rolled out by such players as Verizon and AT&T. Such phones support both voice IP communications and the delivery of multimedia content ranging from simple web pages for pizza ordering to playing video clips.

However, adoption is going to be slower among consumers, with business handset sales outpacing consumer sales by a ratio of about 10 to 1.

In-Stat: Nearly 31 million Business IP Phones will ship in 2012, while the consumer IP Phone Market Diverges towards Media Phones.

VoIP equipment down, capex spending not so much.

November 27, 2008


A pair of reports by Infonetics Research reports that large carriers are scaling back on VoIP equipment purchases by 8 percent in 3Q08, with total capex spending expected to be down around 2 percent in 2009.

Even as service providers spent $816 million on VoIP marketing spending in 3Q08, sales for high-density media gateways experienced a steep decline, and the softswitch market dipped as well in the quarter. The good news is that sales of SBCs and media servers are both up, with softswitches, SBCs and media servers seeing year-over-year growth from 2007.

U.S. carriers were always slowing down their VoIP spends after completing major projects, while in Western Europe and some parts of Asia, inventories were already high. Infonetics predicts that new VoIP projects will be postponed or canceled as more consumers ditch their landlines. The research firm expects a two year pause in the overall carrier VoIP space, with a pick-up coming in 2011.

Turning to the worldwide service provider capex report, sales are on track to reach $275 billion in 2008, up 10.5 percent from the previous year. However, most of the growth is anticipated due to currency appreciation against the U.S. dollar, which peaked back in July. Overall, Infonetics sees a 2 percent downturn in worldwide carrier capex in 2009, led by big cuts by service providers in the Asia Pacific region. The following year – 2010 – is expected to be flat with a slow return to growth due to the start of a new investment cycle.

The good news is most service providers have clean balance sheets, having already adjusted their books after the binge died and forced deep “double-digit” capex cuts. This time around, North America, EMEA and CALA are expected to have low to mid single-digit cuts, while there’s likely to be “steep” double-digit capex cuts in Russia and Asia Pacific.

Infonetics Research:
Service Provider VoIP.
Telecom carriers entering global economic crisis on solid ground; 
tough road ahead

No kidding. Bangladesh ISPs Licences to be scrapped if found running VoIP!

November 17, 2008

  The chief telecom regulation authority in Bangladesh will cancel the license of any Internet service provider (ISP) found running an illegal VoIP business in the country.

A “zero tolerance policy” is in effect. After raids last week, the authorities shut down one ISP and seized equipment used for the illegal activities 

In February the Bangladesh Telecommunication and Regulatory Commission (BTRC) issued three international gateway (IGW) licenses to companies for the purpose of routing international incoming and outgoing calls through VoIP. However, the three IGW operators can’t handle the VoIP call volume being generated within and routed to the country, resulting in a booming grey market. About 25 percent of IGW calls are being routed successfully, said one source.

About 11 million minutes of calls go to and from Bangladesh every day, with 90 percent made by expatriates living around the world and calling home. With over 200 authorized ISPs in the country, a little illegal VoIP on the side is quite tempting, especially since they can charge 2.5 cents per minute – undercutting 4 cent rates charged by IGW licensees.

Bangladesh regulators have had a long-running battle to control VoIP within the country. Phone minutes are a good source of revenue for the government.

Daily Star: BTRC takes tough line on rogue ISPs.

Euro mobile carriers! Who are “They”, anyway? European Union checking again the bad guys as they are blocking VoIP.

November 14, 2008

  The executive branch of the European Union is investigating whether wireless carriers there are illegally blocking VoIP calls from being carried over their networks. You know you can’t use Skype-like applications over 3G using your iPhone? If the Commission gets its way, that practice would end, one would assume.

It’s like this: the European Commission doesn’t like it when companies screw you, the consumer, over. So since it suspects, apparently, that the wireless carriers are, in fact, screwing you, it’s launched the investigation. The Commission sent a questionnaire to several unknown wireless carriers asking them a whole host of questions about what “tools” they use to manage their network, including the restriction of VoIP.


And why are mobile carriers so fearful of the likes of Skype running on their network? They’re afraid that consumers will exclusively use VoIP instead of the regular voice network to make calls.


Cellular impacting landline penetration.

October 20, 2008

 Fear over landline losses has prompted analysts to reduce estimates for third-quarter profit from telecom companies. The shares of Verizon and AT&T have been under pressure since last they reported earnings in late July. AT&T has slid 20% and shares of Verizon are down 21% over the last three months.

According to Thomson Reuters, analysts have reduced estimates for earnings per share and revenue for both Verizon and AT&T over the fear of landline losses. In its last quarterly report, AT&T said total connections fell 8.1% from the year ago period, worse than many anticipated.

Verizon’s landline revenue has also fallen 1.8% from a year ago. Total landlines fell 8.5% in the second quarter from a year ago, with a large amount of that decline coming from the residential segment.

With wireless penetration above 80% in the U.S., there is a limited pool of new subscribers for AT&T and Verizon to compete for.

But how VoIP fits into these figures? Simply we don’t know because VoIP subscribers are using cable services, naked DSL, WiFi/WiMax networks, direct links and not a landline service. So its difficult to count the penetration of VoIP service at this time.

8.5 Million more VoIP-Connected Households by 2011.

October 17, 2008
  About 8.5 million more U.S. households will start using Voice over Internet Protocol (VoIP) for their home phone service over the next two years, according to a new forecast from Pike & Fischer’s Broadband Advisory Services.
The number of VoIP-connected households in the United States will approach 30 million by the end of the decade, generating more than $11 billion in revenue for cable operators, telephone companies and network-independent providers such as Skype, P&F predicts.
The Silver Spring, Md.-based market research group reports these projections in a new report, “Residential VoIP Market Outlook.” P&F reached its conclusions by examining recent growth trends in consumer adoption of VoIP services, and factoring in the growing prevalence of digital service bundles that include multichannel video, high-speed Internet and home phone. VoIP-connected households are expected to grow at about 14 percent annually over the next five years, P&F projects.
Although top telephone companies such as Verizon and AT&T will see their overall residential lines continue to decline, they will see their VoIP customers increase steadily as they attract more customers to their fiber-optic service packages (Verizon’s FiOS and AT&T’s U-verse), according to the analysis. The cable industry, which is much further along in capturing VoIP customers, will see subscriber growth slow somewhat from its torrid pace, the report states.
It is unlikely that the smaller VoIP service providers such as Vonage will see much growth because, unlike the facilities-based providers, they lack the advantage of wrapping their service into discount bundles.
Source: Pike & Fischer.