Brochure
China VoIP Market Development 2005
Description:FindingsGlobal VoIP MarketThe increasing number of broadband subscription and broadband penetration rate has lain down asolid base for the VoIP services to build on. With user preferences changes, the broadband-basedVoIP service is on track to speedy and prosperous development.Due to VoIP services' advantages and promising development, most of the international regulatorypolicies on VoIP have already been lifted, or at least tend to be loosening. Although regulatorypolicies are no longer the key factor against the VoIP service development, most countries are stillin the experimental phase in terms of VoIP service standardization and its competition against thetraditional fixed telephone service.After the development period of 2002 and 2003, the global VoIP market has continued to growthroughout 2004, with its sales revenue reaching $741 million and growth rate standing at 57%.We predict that the global VoIP market will increase steadily in 2005-2006 and a breakthrough willemerge in 2007 for the overall marketChinese VoIP Regulator Restraints' Status and Development TrendsAt present the Chinese government has not given a clear definition to VoIP service, which leads tothe VoIP's absence in regulations and the non-presence of clear relevant management policies.There are two opinions in regards to VoIP service classification, one based on telecom services andthe other on value-added services. In recent times, however, it is planed that the VoIP service willbe divided into two categories, "Multiparty Communication" and "IP-VPN service", for themanagement ease.In the future, the most likely direction for regulatory VoIP service policy development is to managethe market according to the value-added service attributes, but imposing strict criteria on licensingmarket entry. Unsurprisingly, most of the market competition will be limited among several giants.We see the regulatory obstacles against VoIP service development will be removed in theforeseeable future.Chinese VoIP MarketSince broadband users in China have built a sound foundation for the VoIP market development,the number of potential VoIP users may prove to be enormous; among the profession distribution,the VoIP development direction service is pointed at manufacturing industry, IT, finance & insurance, transportation/depository.The Chinese VoIP market value chain can be divided into two layers and three territories. The mainsectors involved include equipment providers, technology providers, platform providers, solutionproviders, operators, service providers, application providers, service agents and end users.After going through the technology infancy phase, the Chinese VoIP service market has taken theinitial development ride, service volume totals 13 billion minutes and the growth rate reaching171%. There is even more to come for the VoIP market. A huge market boom is anticipated toemerge in 2007, with the overall service volume rising to as high as 324 billion minutes and thegrowth rate increasing to 241%.At present, the domestic VoIP service providers can be classified into four groups: conventionaloperators which possess nation-wide networks, experienced instant messaging service provider,internet service provider with large customer base, virtual operator of broadband networkresources with direct-access customer base.Influential Factors for Chinese VoIP Market DevelopmentMarket Drivers- Continuous development of technologies- Ceaseless increase of customer demands- Low cost of VoIP services- Promotions from non-operational service providersMarket Hindering Factors
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