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SIP-Based VoIP Gains Converts in Asia-Pacific
Yankee Group, The, Aug 2004, Pages: 16
The benefits of IP have been touted for years. In addition to significantly reducing opex and capex, IP offers a scalable platform that can create a multitude of innovative applications and services. Nevertheless, the economies of IP are a double-edged sword for a number of Asian incumbents, especially those that profited handsomely from their core basic voice businesses for decades. The emergence of IP-based services, VoIP in particular, has been described as disruptive technology because it changed the costs and the means of voice-based carriers to provision their services.
As VoIP moves into the cost-conscious mainstream market, conventional carriers have little choice but to embrace it. Although this is more of a market response, there have been benefits for carriers. The development of a Class 5-capable softswitch has interested Asian carriers facing the weighty task of revamping their voice business strategies.
Aside from the cost savings advantage, the much-heralded benefit of softswitches is their ability to enable service providers to rapidly introduce new voice and data applications with little incremental costs. Based on an estimate by a leading equipment vendor, Asia-Pacific represents roughly 34% of the server-based softswitch investments in 2004, clearly indicating market potential.
Asian incumbents and competitive carriers have expressed strong commitment to implementing softswitch-based solutions in the region. Their enthusiasm for softswitchbased architecture is shared by a number of managed network providers. For instance, Infonet has high hopes for the capability of softswitch technology to improve the overall networking experience of its MNC customers around the globe. The company expects to roll out its global softswitch platform by 2005.
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