international voice telecommunications revenue lost to Voice over the
Internet Protocol (VoIP) bypass peaked in 2004, and will gradually decline
even as VoIP minutes of use (MOUs) continue to increase, according to a
new market analysis report by Insight Research. The study concludes that as Latin American
telecommunications companies brought their international rates into line
with actual costs, the attractiveness of VoIP as an arbitrage opportunity
diminished, slowing down its adoption.
According to the market
“Telecommunications and VoIP in the Americas: A Market Perspective on the
Major Economies 2005-2011,”
in 2004 VoIP calling revenue represented 58 percent of the $14 billion
spent in Brazil, Argentina, and other Latin American countries on
international calling. By 2011, VoIP bypass is expected to account for
only $5.7 billion out of some $18 billion spent on international calling.
Of the 5.9 billion Latin American international calling MOUs recorded in
2004, nearly 48 percent were attributable to VoIP. By 2011, VoIP as a
percent of all Latin America traffic will drop to 28 percent.
settlements are in line with the real costs to deliver service, the
arbitrage opportunity becomes less compelling, VoIP growth rates slow and
actually become a smaller percentage of all international calls,” says
Insight president Robert
Rosenberg. “Take Argentina as just one example: in 2004, international
calling revenue amounted to $2.7 billion of which $0.7 billion was lost to
VoIP bypass. In 2011, we expect total international voice to generate
$3.4 billion in revenue, but VoIP bypass will take a far smaller
percentage,” concluded Rosenberg.
and VoIP in the Americas: A Global Market Perspective 2005-2011”
forecasts access line growth and wireless subscriber growth, analyzes data
on MOUs related to international circuit switched voice and VoIP traffic,
and forecasts VoIP MOUs and revenue per subscriber. VoIP’s impact on
capital investment in hardware and software is also quantified. Data is
provided for the major economies in North America, Central America,
Caribbean, and Latin America including the US, Mexico, Argentina, and
A free report excerpt, table of contents, and ordering information is
Conger, Director of Marketing at 973-541-9600 for additional information.
Private Line and Wavelength Services, 2005-2010