Mass migration to VoIP expected within a decade

By Erwin Lemuel Oliva INQ7.net

CARRIERS around the world are starting to map out plans to migrate to next-generation telephone networks. And part of the plan is gradual adoption of voice over Internet Protocol (VoIP), whose deployment is predicted by the market research firm In-Stat to go massive within the decade.

While the international telecommunications industry is at the early stages of VoIP adoption, mass migration to it is likely from 2010 to 2014, according to the latest In-Stat study.

Consumer and small business ramp-up period to VoIP could begin from 2005 to 2009, with migration peaking in the 2010-2014 time frame, added the study.

The market research firm however indicated that this time frame of VoIP adoption is largely dependent on carriers' strategies in rolling out Next-Generation Networks (NGNs).

The move to NGNs will be influenced by many factors: the increasing cost of maintaining traditional public switched telephone networks (PSTN), available investment funds, technology, regulatory policies, pricing trends, and competition, according to the In-Stat analyst Keith Nissen.

Each carrier is expected to develop its own unique NGN migration strategy in the next few years, but the general direction is for carriers to gradually replace their PSTN with IP-based networks, Nissen said.

In the Philippines, the dominant carrier Philippine Long Distance
Telephone Co. announced plans to migrate its existing PSTN to an IP-based network early this year.

PLDT was silent, however, on when it will roll out VoIP since it’s currently blocking the planned deregulation of this technology and related its services.

"In-Stat has concluded that as VoIP competition and demand increase over the next five years, incumbent carriers will increasingly opt for PSTN replacement to lower operating costs," the high-tech market researcher noted.

In-Stat recently issued a report titled "Carrier NGN Migration Strategies Set VoIP Timing," profiling selected carriers worldwide to illustrate alternative network migration strategies.