Growth in cheap voice over IP threatens third world

Voice traffic over IP networks is set to increase by 50 per cent this year, according to the latest report by the International Telecommunication Union (ITU).

By editorial@silicon.com, 8 March 2001 10:33

NEWS The ITU estimates that four billion cross-border minutes of voice over internet protocol (VoIP) were completed in the past year via the internet or intranets. Currently, this constitutes only three per cent of international telephone traffic. However, the ITU has warned third world governments that they face losing out on lucrative revenue from incoming telephone calls as VoIP takes off with state-owned telcos set to be the biggest losers. In Sri Lanka, for example, the number of incoming voice minutes from abroad in the past year has fallen from around 16 million to nine million minutes per month, which equates to around $2m of lost revenue per month. VoIP communication was initially been hampered by poor quality technology but potential savings are likely to attract users as it is considerably cheaper than traditional call charges and technological innovations are repidly improving the quality of transmission. From http://www.silicon.de

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