IDC Forecasts 22 Million Voice Over Broadband Connections in Western Europe by 2008

AMSTERDAM, April 18, 2005 - According to a recent study from IDC, voice over broadband (VoBB) - voice traffic carried across a broadband link, either in IP packets (VoIP) or non-IP technology using formats such as voice over DSL - took off in Western Europe in 2004. Two million new connections took the total number of connections to 2.5 million, which is expected to rise to over 22 million by 2008, yielding $7 billion in revenue, of which 60% will come from the consumer market.

Operators have differing attitudes to VoBB depending on their size, network, installed base of customers, and, importantly, their competition. However, most operators in the European broadband market are either selling, launching, trialing, or considering launching some sort of VoBB service. "For many incumbent operators, this will not be a tempting scenario due to the prospect of cannibalizing existing revenue streams," said Jan Hein Bakkers, senior research analyst for IDC's European Telecommunications and Networking research. "Nevertheless, they will be forced into this market at the risk of losing out on customers altogether."

Although VoBB was mainly used to provide secondary line services at the end of 2004, it will increasingly be used as the primary line during the forecast period, as full unbundling becomes more common and cable operators embrace VoBB services to complete their triple-play bundle.

The IDC study, Broadband Voice Opportunity in Western Europe, 2004-2008 (Doc #BT10L, March 2005), examines the state and prospects for the VoBB market and looks at the strategies of various operators. Additionally, this study includes a Western European forecast of broadband connections used for VoBB services as well as the revenue opportunity. These forecasts are segmented by broadband technology, end user, and type of line (primary versus secondary line). To purchase this document, please contact your local IDC office or visit www.idc.com.

About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com
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For more information, contact:
Jan Hein Bakkers
+31 20 4089 540
jbakkers@idc.com