IP Telephony News Wrap-up for Dec, 15 2003

1. TeleGeography Releases Annual Report on Voice Traffic
TeleGeography has released TeleGeograpy 2004, its annual report on international voice traffic. The 278-page publication provides traffic volumes for more than 2,000 cross border routes, international traffic stats to and from mobile phones, retail and wholesale pricing data, international traffic flow analysis and growth projections, carrier rankings and market shares, and analysis of RBOC entry into into international long distance markets.

The report features a call volume data set of more than 3,000 international routes in 116 countries, analysis on traffic, prices, revenues, and technology trends for the international LD sector. The publication incorporates over 30 pages of charts and tables on long haul terrestrial networks, undersea cables, and international Internet backbones.

The firm finds:


International switched traffic increased just over 6% in 2002 to 155.2 billion minutes. Europe and North America generate 75% of world’s international traffic.


VoIP traffic surged 80% in 2002 to 18.7 billion minutes, accounting for almost 11% of international traffic. ITXC and iBasis are recognized as the leading VoIP carriers, each carrying more than 2.5 billion minutes of international traffic in 2002.


Mobile originated international traffic surged upward by approximately 19% in 2002 to 27.9 billion minutes. Calls from phones accounted for 17.4% of the world’s international traffic. In Europe, mobile terminated calls accounted for 32% of incoming international traffic, but over 70% of international carriers’ estimated termination costs.


The four U.S. RBOCs accounted for 87% of locall access lines in the U.S., but only carried 1% of U.S. outgoing international traffic in 2002. Qwest’s long distance subscriber base more than doubled in the second quarter of 2003 and Bell South’s LD revenues increased 70% between the third quarters of 2002 and 2003.


Price declines have outpaced traffic growth in the past 2 years, causing retail revenues from international traffic to decline from $72 billion in 2000 to $53 billion in 2002. Between 1999 and 2003, the firm estimates that average price decreases of 17.2% per year will have undermined annaul call volume increases of 11.9%, with net revenue growth spiraling downward by an annual global average of 7.3%.

TeleGeography notes that VoIP likely dragged down international service revenue by just 2 cents per minute in 2002, to 32 cents.

 International Minutes (in millions) -----------------------------------                  1998       1999      2000      2001      2002     2003    VoIP              150      1,655      5,954    10,147    18,045   24,519 PSTN           93,000    108,000    132,027   146,095   155,165  166,615 Total          93,150    109,655    137,981   156,242   173,210  191,134   VoIP Share of  International  Traffic           0.2%       1.5%       4.3%      6.5%      10.4%   12.8%  

A single user online edition (12 months with updates) of the publication goes for $3295. A print edition runs $2795. One of each is $3995. An enterprise edition, which includes the online edition as well as 2 print publications is $11995.

TeleGeography also provides access to its traffic database. The service allows users to search seven years of exportable traffic statistics (over 140,000 data points). Users can employ customized traffic queries by country and route including the use of reverse route queries. The database includes all available incoming and outgoing traffic volumes.

Single user access to the database for 12 months is $6495. An enterprise edition to the service, which includes 2 print publications, is $22995.

PriMetrica resells the publication and service. From its website, you can access the executive summary and table of contents for the report as well as place orders.



3. Gartner Releases Study of IP Centrex Market
Gartner has released IP Centrex: Into the U.S. Mainstream and IP Centrex: Where North America’s Big Boys Stand Today. The first publication provides analysis and market projections through 2005. The latter includes a status report on the offerings of major carriers.


5. IP Deliver Launches Managed VoIP Network Services
IP Deliver has launched Tailwind, a managed VoIP service solution that includes OSS, billing mediation, call routing, protocol conversion QoS management, and real-time reporting.

IP Deliver

7. MTU-Intel Deploys NetCentrex’s Softswitch in Russia
MTU-Intel, operating under the name Tochka.ru, has deployed Netcentrex’s softswitch to deliver VoIP services in Russia. MTU-Intel is the largest provider of Internet access and IP communications services in the Moscow area.

AMT Group served as the systems integrator.



AMT Group

9. Raindance Awarded VoIP Patent
Raindance Communications has been awarded a patent that covers its system and method for transmitting and integrating VoIP into web based communication events. The technology will be employed in the company’s new enterprise conferencing platform, K2. K2 will be introduced in early 2004.

Raindance has 4 patents and 9 pending applications with the U.S. Patent and Trademark Office.

Raindance Communications

11. Global Crossing Emerges From Bankruptcy with $250M Investment
The U.S. Bankruptcy Court for the Southern District of New York has approved a reorganization plan for Global Crossing that includes a $250 million investment by Singapore Technologies Telemedia. ST Telemedia will gain a 61.5% equity stake in Global Crossing. The remaining share of the company will be distributed to Global Crossing’s former creditors. The company’s preferred and common stock holders prior to bankruptcy received no consideration under the reorganization plan.

As part of the plan, ST Telemedia will apoint eight directors and Global Crossing’s former creditors will appoint two. Lodewijk Christiaan Van Wachem, former chairman of the supervisory board of Royal Dutch Petroleum Company, has been appointed as Global Crossing’s Chairman of the board.

During restructuring, Global Crossing signed 4,200 customer contracts valued at $1.7 billion. The company is on track to transmit 17 billion minutes of VoIP traffic this year, a 15-fold increase from 2001.

ST Telemedia provides a wide range of communications and information services including fixed and mobile communications, Internet exchange and data communications, satellite, broadband, and Pay TV.

ST Telemedia

Global Crossing

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