Telecom Manufacturer: National Telcos Are Dinosaurs, This Is the 'Year of VoIP'
Just received a release from telecommunications equipment manufacturer DeTeWe with a dire warning for national telecom operators: You're going the way of the dinosaurs -- those little furry VoIP providers are going to take over your ecological niche!
The release contains a quote from DeTeWe's CEO Nadahl Shocair. Is he an alarmist? Judge for yourself:
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“2004 laid the foundation for widespread take-up of VoIP, with a range of new product releases and service announcements that meanVoIP is set to be a reality this year for consumers and enterprises both large and small.� In the US alone, the market is likely to double over the next year from the current 700,000 subscribers to more than 2 million as broadband connections become even more common in US homes.
"The time of national operators is over.� Increasingly, they’re starting to look like dinosaurs against the nimble, global players that are entering the VoIP market.� We’re going to see a shakeout on the scale of the commotion caused by the budget airlines when they launched a few years back.� Up to 40% of the free cashflow currently generated by the telecoms operators could disappear by 2007, as a direct result of the move to Voice over Internet Protocol (VoIP).
"Even enterprise customers that aren't candidates to deploy IP telephony now are buying VoIP-capable phone systems from us for the future.”
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Interesting comparison with the airline industry and the rise of the budget operators. Is it applicable to telecommunications? I don't pretend to know.
The IP communications trend does seem like a potential threat to the big operators, but transformation and adaptation is also an option. Maybe the dinosaurs can find ways to survive as crocodiles and iguanas?
AB -- 2/21/05
Related Tags: operators, dinosaurs, going, national
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