IP services will steal the bread and butter from telcos

NEWS These changes will drive competition but damage traditional revenue streams for traditional telcos, the report continues. Services such as voice capability over IP and high bandwidth, that are currently regarded as value added features, will become standard. Sameer Padhye, VP of service provider solutions at Cisco, said: "The only medium that will deliver innovative internet based services is IP." Two types of operators will survive after the shake up, according to the survey - global or regional operators offering an extensive array of services to a diverse customer base and highly specialised operators targeting niche markets. The report concludes that survival in the IP networked market will depend on first mover advantage, and constant innovation. However, the survey also found that telcos are uncertain how value added IP services will evolve once voice becomes commoditised. The study was based on interviews with 30 European telcos including incumbent carriers, mobile operators and cable TV firms.