Study: IP, NGN Voice Revs Could Total US$776mn in 2012

Annual revenues from hosted IP and next-generation voice services for enterprises in Latin America could total US$776mn in 2012 compared to US$37mn in 2006, according to a study by international consultancy Frost & Sullivan.

The consultancy expects this market to grow at a compound annual growth rate (CAGR) of 66% between 2006 and 2012.

The study highlights the region has been experiencing an extensive migration to next-generation network infrastructure in the recent years.

However, Frost & Sullivan still sees the market facing some challenges regarding the quality of service and security, among other issues, which are holding up the widespread deployment of IP-based enterprise voice services in the short term.

Frost & Sullivan believes that managing service quality could represent a challenge for service providers as users are used to the quality of services offered by traditional PSTN networks.

The consultancy also believes that the SME segment represents a very good opportunity for IP services providers since companies within the segment are increasing their investments in technologies.

However, the study stressed the fact that the SME segment in Latin America is underserved as many SMEs do not have the bandwidth or budget to contract telecom services with alternative high-capacity fiber providers, and instead generally rely on services delivered over the incumbent carriers' local loop.

Posted to the site on 22nd November 2007