Report

December 2002

The Price Of VoIP In Europe


Lars Godell
European companies are happy with their voice over IP (VoIP) trials but balk at the cost of a full rollout. While full replacement doesn't make sense, all but the largest firms will save up to 27% with a gradual IP migration.
by Lars Godell with Matthew Nordan, Thaís Lapolla

INTERVIEWS
  • Eighty-seven percent of 23 European telecom managers interviewed expect to deploy packet voice within five years.
  • While 100% of today's adopters are happy with VoIP, they packetize only 3% of their voice traffic, on average.
ANALYSIS
  • A domestically focused European company will cut five-year voice costs by 27% with IP trunking.
  • International WAN costs of 16,000 per Mbps reduce cost savings to 14% for a more international firm.
  • The largest multinationals shouldn't bother with VoIP.
ACTION
  • Before you do anything else, audit the network.
  • Replace private WANs with VPNs, regardless of VoIP.
 
Figures & Data
  • Figure 1.  Large European Companies' Views On VoIP
  • Figure 2.  Model: Europe, Voice Costs For A Large, Domestically Focused Firm
  • Figure 3.  Model: Europe, Voice Costs For A Large, Internationally Focused Firm
  • Figure 4.  Model: Europe, Voice Costs For A Very Large Multinational Firm
   
RELATED MATERIAL 
  • Online Resources
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Governments go on the VoIP warpath.
  • VoIP as an end-to-end service in the public network? Not any time soon.
  • Will complexity kill IP's network management benefits for telcos?

 

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