SIP Services Will Generate $150 Billion in Annual Revenue by 2012, Says ABI Research

Business Wire, Nov 19, 2007

LONDON -- IP Networks deployed by fixed and mobile operators will lead to mainstream Voice over IP and SIP (Session Initiation Protocol) services, driven by the increasing popularity of "smart" devices such as PDAs and smartphones. ABI Research principal analyst Ian Cox explains, "New affordable price points and ease of use will allow consumers to benefit from SIP services such as instant messaging, video sharing, and conferencing, which will join VoIP as it takes over from circuit-switched voice."

Cox adds, "We have seen the start of a revolution, as mobile handsets become the product of choice not just for voice and simple text messaging, but also for any task that one can perform on a personal computer. And as networks are replaced by 'flat architecture' all-IP with SIP application servers in the core, all forms of communications become possible."

SIP services will develop into the norm after 2010 and rapidly begin to dominate the world's telecom markets. By 2012, almost half of all telecom users will be using at least one SIP service, but likely will have many services from multiple devices able to communicate with other users and services across the Web and between enterprise and public networks. This will generate over $150 billion in service revenue annually with cumulative infrastructure capital expenditure of over $10 billion by that date.

"Using SIP, telephony becomes another Web application, which can be integrated into other Internet services," expounds Cox. "It enables service providers to build converged voice and multimedia services."

ABI Research expects that by 2012, almost 1.2 billion VoIP users to be active, with most users also subscribing to several forms of messaging and video sharing driven by interest in user-generated content. Additional services supported by SIP will include presence, click to dial, buddy lists, e-mail, and Web access, which are assumed to be "core" services and included as standard in any service offering and bundled with broadband access. A portion of the VoIP users will also be connected to an FMC service.

In its recent report The Worldwide SIP Services Market

(http://www.abiresearch.com/products/market_research/The_Worldwide _SIP_Services_Market) ABI Research reviews the global landscape for SIP services. It includes forecasts for the market potential to 2012, including users (consumer versus business), service revenue, and capital expenditure. It forms part of three subscription Research Services: Mobile Operators

(http://www.abiresearch.com/products/service/Mobile_Operators_ Research_Service), Wireless Infrastructure

(http://www.abiresearch.com/products/service/Wireless_ Infrastructure_Research_Service), and Fixed Mobile Convergence

(http://www.abiresearch.com/products/service/Fixed-Mobile_ Convergence_Research_Service).

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call 1.516.624.2500.

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