VoIP growth in LatAm driven by cheap & broadband
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The power of VoIP is rolling into Latin
America, driven by lower costs and the growth of broadband
services. It’s also affecting service
provider profits, says the new “VoIP in Latin America”
report by Frost & Sullivan.
In Brazil,
the growth of VoIP and IP telephony is in part expected to cause a 2.8
percent early dip in local revenues and a 7.9 percent dip in long-distance revenues over
the next six years. End users say they’re reaching for VoIP for cost
reductions.
Frost and Sullivan expects the LatAm VoIP market to grow
from earned revenues of around $72 million in 2007 to nearly $626 million in
2012. F&S says VoIP and wireless VoIP service providers need to ensure both
operational efficiency and quality of service to thrive, along with effective
distribution and promotion strategies.
Factors that will hinder VoIP growth include lack of number
portability regulation, poor end-user awareness (i.e. marketing), low call
quality levels and an “almost non-existent” VoIP pre-sales effort. VoIP carriers need to improve pre-sales
support and customer service, along with creating new service bundles and
improving VoIP quality.
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