Released on = April 27, 2006, 6:49 am

Press Release Author = Visiongain

Industry = Telecommunications

Press Release Summary = San Francisco, CA and London, UK; 27 April 2006: Measures
considered by some operators to block, or make illegal, the use of VoIP services on
their network are a waste of time, especially given the clear signals by consumer
and business users indicating a demand for these type of applications. This is one
of the findings from visiongain's new report, "VoIP in Europe 2006-2011: Market
analysis and forecasts."

Press Release Body = Visiongain believes there is money to be made from VoIP,
arguing that VoIP products and services offer operator new revenue streams and means
of growing their business - if they employ the right strategies. Visiongain
forecasts the number of residential VoIP users growing at a CAGR of 55.8% until
2011, with revenues reaching almost $2 billion in 2009.

"Operators should focus on deploying IP-based networks rather than worrying about
possible threats from VoIP. They ought to look at VoIP as an opportunity to develop
new revenue streams," says visiongain analyst and the report's lead author Dr
Jean-Pierre Aubertin.

"Fixed-line operators are going to be forced to drastically alter their business
models and move into mobiles as a result of the trend for fixed-to-mobile
substitution among their subscribers. They will also have to bolster their
involvement in the provision of Internet access to maximise their broadband
exposure," adds Dr Aubertin.

Naked DSL, which allows customers to cancel their PST service while retaining their
broadband DSL service, represents another big threat to fixed-line operators
notwithstanding the damage that Skype and fixed-mobile substitution are causing to
these operators.

"VoIP is really going to take off once naked DSL becomes widely available, and
service providers are closely watching legislative moves to make it happen. This is
going to result in increased competition and is going to benefit consumers,"
concludes Dr Aubertin.

The VoIP market is growing in importance as European companies adopt IP strategies.
The push for VoIP is going to be prominent in a number of segments within the
business and consumer markets, offering significant opportunities for growth in the
development of hardware and services.

Competition in Europe is already intense and VoIP activity is on the rise. ISPs are
offering telephony services to their broadband users, and AOL, Wanadoo, BT broadband
and many more are signing-up new users on a daily basis. Skype, Google and Yahoo are
developing alliances and partnerships with Vodafone, 3 and other service providers
in order to develop VoIP solutions that are going to be mass marketed to users on a
global basis.

Visiongain also foresees strong demand for hosted IP telephony and IP-based PBXs in
the enterprise market. The convergence of data, voice and multimedia is presenting
vendors, service providers, and users with new opportunities to manage the delivery
and utilisation of telecoms services. The PBX market will increase to 19.4 million
lines shipped in 2009, accounting for over $5 billion in revenues. By 2011, 98% of
all PBX shipments will be IP based. Hosted IP telephony will also see strong growth,
with revenues exceeding $1 billion by 2009.

This report analyses the emergence of VoIP and Wi-Fi/cellular functionality in the
European enterprise, business and consumer sectors. Detailed country forecasts are
provided and discussed in terms of geographical and technological markets. The
report also provides strategies and recommendations that are applicable to fixed and
mobile operators, handset vendors, hotspot owners and ISPs. It discusses measures
that companies need to implement in order to remain competitive.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the
Executive Summary, charts and images, please send an email to
sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711.

About visiongain
Visiongain is a specialist Business Information Company, focused on providing
cutting edge products and services across the Telecommunications, Defence,
Pharmaceutical and Finance sectors. The company produces a host of management
reports, offers a consultancy service, as well as producing business conferences,
newsletters, and e-zines.

The company has firmly established itself as the first port-of-call for the business
professional, who needs timely and independent, high quality, original material to
rely on.
Visiongain has a global client base with offices in London and San Francisco.

For more information on visiongain, please visit the website:
www.visiongainintelligence.com


Web Site = http://www.visiongain.com

Contact Details = 40 Tooting High Street
London SW17 ORG
Tel. 02087676711
Fax. 02087675001