VoIP bypass losses to reduce

NEW DELHI: The Asian carriers will be losing less revenue next year from voice over the Internet protocol (VoIP) bypass, according to a new market analysis report by Insight Research.

According to the press release, in India, international call revenue amounted to $2.7 billion in 2004, of which $1.5 billion was lost to VoIP bypass. In 2011, the company expects total international voice to generate $4.5 billion in revenue, with VoIP bypass taking a far smaller percentage.

According to the market analysis study, "Telecommunications and VoIP in Asia, Oceania, and the Mideast: A Market Perspective on the Major Economies 2005-2011," in 2004 VoIP bypass calling revenue amounted to slightly more than one-third of the $98 billion spent in China, India, Japan and other Asian countries on international calling.

By 2011, VoIP bypass revenue is expected to remain essentially flat at $30 billion while international call revenue jumps to about $160 billion. Of the 96 billion Asian international calling MOUs expected to be recorded in 2011, only 22.8 billion will be attributable to VoIP.

The study concludes that as Asian telecommunications companies bring their international rates into line with actual costs, the attractiveness of VoIP, as an arbitrage opportunity will diminish, slowing down its adoption.

"Once international settlements are in line with the real costs to deliver service, the arbitrage opportunity becomes less compelling, VoIP growth rates slow and actually become a smaller percentage of all international calls," said Insight president Robert Rosenberg.