Frost & Sullivan Adds Report: Cost Benefits and Broadband ...

Tag : long distance call
Frost & Sullivan Adds Report: Cost Benefits and BroadbandPenetration Are Driving VoIP in Latin America (Wireless News Via Acquire Media NewsEdge)
Traditional local and long distance telephony operators in Latin
America are facing increasing competition from Voice over Internet
Protocol (VoIP) services, which are being driven by their inherentcost
benefits and the increasing penetration of broadband andtriple-play
and in order to take VoIP to the next level, VoIP and WirelessVoice
over Internet Protocol (WVoIP) service providers should ensure
operational efficiency and quality of service, along with effective
distribution and promotion strategies, according to a new reportfrom
Frost & Sullivan, "VoIP in Latin America 2008".

The research firm also noted in its report that it finds that the
market earned revenues of $72.3 million in 2007 and estimates thisto
reach $625.9 million in 2012.

"The growth of VoIP and IP Telephony is one of the mostimportant
factors for a 2.8 percent yearly dip in local revenues and a 7.9
percent dip in long distance revenues in Brazil during the next six
years," notes Jose Roberto Mavignier, Industry Analyst atFrost &
Sullivan. "Analyzing end-user response, Frost & Sullivanfound cost
reduction to be the most relevant factor for the increasingadoption of
VoIP in Brazil."

As Latin American customers and businesses are largely reliant onvoice
communications and also price sensitive, convergent technologiessuch
as VoIP, IP Telephony, and Fixed-Mobile offers are gaining ground,
reducing traditional fixed voice revenues in the region.Furthermore,
new generation service providers such as Internet-based companies,
cable TV providers, and competitive local exchange carriers (CLECs)
with business models are introducing substitute products that are
affecting traditional fixed voice services.

However, lack of number portability regulation, poor end-user
awareness, low call quality levels, and an almost non-existent VoIP
pre-sale effort still make it difficult for VoIP service providersto
enlarge their share in the voice revenue pie in the region.

"Improving the clients' understanding of technical andoperational
aspects and efficient pre-sales support such as physical


points-of-service sales, customer service, and new bundles ofservices
will be crucial to make VoIP services more appealing to LatinAmerican
users," says Mavignier. "Above all, the quality of callshas to be
flawless in order to attract and retain fixed telephonyusers."

While it is not easy for the smaller VoIP providers to compete withthe
big incumbents, they will do well to combine the agility of theirsmall
operations with innovative business strategies, which might helpthem
to take this leap forward. Such strategies could includepartnerships
with major retail stores to resell equipment and services, Internet
customer service, Internet and direct marketing campaigns, and
alliances with content providers to bundle services. With thearrival
of ADSL 2+ services in the region, supported by 10, 20, 30, and upto
60 MB connectivity portfolios, technical issues could be easier to
resolve in the future.

VoIP in Latin America 2008 is part of the Communication ServicesGrowth
Partnership Service program, which also includes research in the
following markets: Latin America Broadband Access Market, LatinAmerica
Mobile Wireless VoIP Services, Latin America Local and LongDistance
Telephony Services.

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((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))

Copyright ? 2008 Wireless News

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