IP Revenue Prepares to Soar

Internet protocol (IP) services revenue will surge to approximately $70 billion in the US by 2004, becoming one of the top revenue sources for service providers over the next five years, according to research by Cahners In-Stat Group.

IP applications include e-commerce, videoconferencing, distance learning, Webcasting, multiplayer games, call centers, unified messaging, and interactive voice response using IP-based broadband networks.

According to the research, several trends will both benefit and challenge the future deployment and evolution of IP services. IP will allow for the following advancements, according to the report:

• An increase in the speed of application development, creating new opportunities for carriers
• An open environment that facilitates the deployment of services
• A mass customization model that enables service providers to quickly deploy services to the mass market that can then be individualized by each user
• The utilization of Voice over IP and Virtual Private Networks to deliver newly developed applications — driving customer loyalty and increased revenues.

The nature of IP completely changes the dynamics of service provisioning and offers a tremendous opportunity for those service providers willing to start the long process of transitioning their legacy networks to next generation service platforms, In-Stat found. Those who can successfully integrate the strengths of both existing circuit switched technology and the emerging packet technology will be well positioned to take advantage of this next generation of communication services.