December 14, 2006

Making Broadband Triple Play Profitable: VoIP Revenues

This is the 16th document in the "Making Broadband Triple Play Profitable" series.

by Lars Godell

with Thomas Mendel, Ph.D., Andrew Parker, Andrea Carini, Daniel Krauss, Lizet Menke

Executive Summary (This is a document excerpt)

Many Western European incumbent telcos have launched consumer VoIP services, but most telcos don't have many subscribers yet. For 2005, we estimate that 2.6% of Western European broadband consumers used VoIP for almost all their fixed-line calls from home. This reflects the early days of both the VoIP market and incumbents' NGN migration plans. Forrester's detailed, bottom-up VoIP revenue model for 17 countries supports aggressive VoIP ambitions for incumbent telcos. The quick ramp-up has already started, and we expect three in four European xDSL/fiber broadband subscribers to use VoIP within 10 years. However, this masks a big gap between Ireland and Greece, where we only expect 45% penetration, and Austria, France, the Netherlands, Norway, and the UK, where we expect 100% VoIP penetration in year 10. The key driver for the highest penetration rates will be incumbents' migration of customers to an all-IP NGN. Incumbents' fixed-line telephony revenues are under pressure from both mobile and IP substitution, so we don't expect the average incumbent telco to get more than €63.58 in net annual VoIP revenues per broadband user in year 10.

Buy Risk-Free

Download and print PDF immediately. Price: US $499

Our Money-Back Guarantee: If you are not completely satisfied, return it for a full refund within three weeks of your online purchase.

Already a Forrester Client?
Log in to read this document.