VoIP Solutions Could Cost Telephone Companies $479 Billion by 2020
Anyone who's been walking out in the street in the last few days can deduce one thing: Traditional telecommunications is on a downward spiral. A new study confirms this, saying that the telephone market will worsen significantly and probably almost die by 2020.
The POTS (an abbreviation for "plain old telephone system") has been a victim of progress for several years. Since it has nowhere left to go, the only way for it to go is to fly down, crash and land in a coffin. Mobile phones were the first devices to make a significant dent in landline providers, although service providers for telecommunications have since adapted this technology and also established the infrastructure necessary to provide their own mobile services. Every telecommunications company alive today owes its current existence to the fact it's still providing mobile phones. But there are new threats on the horizon that perhaps telecom firms might not tap into quickly enough. All of them use one simple technology: VoIP. Their names are Skype, Ooma, and Vonage - the most popular VoIP providers in existence.
Ovum, a research group, says within its study that the telecom market will lose $479 billion due to this massive revolution. This equates to 6.9 percent of current voice revenues. Although some predict gloom and doom for the telecom industry, Ovum's study clearly shows that traditional telephone companies are more flexible and ready to adapt to change. They will come up with something for self-preservation, even if it costs them an arm and a leg.
We're more than certain that this is a prediction, however, of the fact that telephone communications are going to fade slowly as VoIP becomes the new wave of innovation. Of course, the advent of VoIP might not completely eliminate the telecom industry, but this is just the tip of the iceberg.
Edited by Jamie Epstein