Monday, October 11, 2004

VoIP market to grow 41% annually for five years

... in Korea

based in the governments decision to allocate an IP-only prefix. This gives also hope for countries which made a similar decision recently (and more to come).

The The Korea Herald : The Nation's No.1 English Newspaper is citing an IDC report:

The domestic market for Internet-based telephony equipment will grow to 257.9 billion won ($226 million) by 2008 from an expected 70.3 billion won this year, according to an industry report.

International Data Corp., a U.S.-based information-technology research firm, predicts Korea's IP-based telephone equipment market to increase 41 percent annually over the next five years, following government plans to encourage Internet-based telephony services.

The Ministry of Information and Communication revealed plans last week to encourage VoIP operations by allocating an IP-only prefix, 070, that can be used anywhere in the country. The government expects around 4 million VoIP subscribers by 2007.

"The VoIP equipment market is responsive to the development stage of the service market, and the lack of regulations regarding numbering and interconnection have kept the domestic sector from taking off," said Jung Kwang-jin, a senior analyst at IDC Korea.

"With the dominant fixed-line carrier KT Corp. strengthening its efforts to extend its competitiveness in Internet-based telephony, the VoIP equipment sector is due for significant growth along with the service market," he added.

The domestic VoIP equipment market was valued at 45.7 billion won in 2003, with private branch exchange equipment, including IP-phones and VoIP gateways, accounting for a combined 34.4 billion won, or more than 75 percent of the sales.

Media gateways, which link circuit-switched telephone networks and packet-switched IP networks to carry voice and data, accounted for 14.2 percent of the sales in 2003. Soft switches, a hardware mapping device that translates the phone number into an IP address, accounted for 10.6 percent of the sales.

IDC expects the market for private branch exchange systems and VoIP gateway devices to grow annually by 50.9 percent and 33.7 percent, respectively, through 2008.


By Kim Tong-hyung

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