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Packet-Switching
Telephony to Transform Long-Distance and Local Service Markets
Packet-switching technologies,
which carried a mere 2.5 billion minutes of calls in 1999, will revolutionize the
telecommunication market in the next few years, carrying over 114 billion minutes of
long-distance traffic and serving nearly 3.5 million local service customers by 2004.
The technology will mature to provide both reduced costs and improved features and
services to consumers," said Ben Sauter, author of Parks Associates’ new report
Packet-Switching Telephony.
"Until recently, packet-switching technologies have affected only long-distance
services; however, the introduction of VoDSL and IP telephony over cable networks
(VoCable) will have a measurable impact on local telephone services over the next few
years."
VoDSL and VoCable, two variations of packet-switching technologies, are
"connectionless" digital phone lines that can carry multiple voice signals over
a single twisted-pair of copper wires at a much lower cost than the traditional analog
phone lines.
Introduced in 1995, packet-switching telephony has been gaining acceptance among both
traditional carriers and startups such as iBasis, Level 3 Communications, and Williams
Communications. Until recently, most companies deployed the technology primarily within
the domain of long-distance services, but its influence is spreading to local telephony.
Several leading CLECs (competitive local exchange carriers) have announced plans to
introduce VoDSL services before the end of 2000, and the Bells will introduce services in
2001. By 2004, residential VoDSL services will attract nearly 1.9 million customers,
according to Parks Associates’
Packet-Switching Telephony.
The cable industry will also be a competitive force in local service markets, once it
has developed an IP-based telephony solution that can offer the quality of service that
consumers demand. VoCable services are already in trial as the companies look to develop
carrier-class services, and several major service introductions have been slated for 2001.
VoCable will reach 1.6 million subscribers by 2004, 300,000 less than VoDSL.
For more information about this or any other report, please contact
Parks Associates at 972-490-1113 or
sales@parksassociates.com.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, energy
management, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
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