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Voice Over Internet Protocol (VoIP) Market Opportunities, Strategies, and Forecasts, 2004 to 2009
WinterGreen Research, Inc., Jan 2005


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Voice over Internet protocol (VoIP) can be implemented in two ways: calls can originate from the traditional TDM circuit switched technology, or originate from an Internet protocol router. IP to TDM and TDM to IP VoIP are very different. These fundamental differences in technology referred to as the same term (VoIP) have served to confuse the market, with distinctly different products being positioned as VoIP solutions.

In the near term, routers will be the bases for originating VoIP calls implementing IP to TDM. IP to TDM will quickly become the entire market. TDM to IP call origination is outdated and far more expensive. The implementation of broadband in the home will hasten the desire to originate calls directly from an existing Internet connection.

IP to TDM is positioned to dominate the market. The multiple IP-to-IP gateway Cisco IOS software images are used to implement VoIP that originates calls from an IP connection and connects to the existing TDM traditional switched networks after call origination. Feature licenses are priced based on the platform and processor used. Ports per se do not exist in a system that originates VoIP from the router. Ports are virtual, dependent on the capacity of the network. The larger the performance capability of the gateway, the greater is the price of the feature license.

The global service provider voice over Internet protocol (VoIP) gateway market at $165.3 million in 2003 is expected to reach 985.7 million dollars in the year 2009. The market is anticipated to grow at a steady positive rate over the years. The growth is brought by replacement of digital proprietary voice switching systems with systems that do manage to put voice over the Internet reliably and clearly.




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