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Could Telkom be tempted by VOIP?


Johannesburg, 14 Jun 2005

The distinction between making a voice over Internet Protocol (VOIP) and a standard landline call will become increasingly blurred, and it will not be long before users will not even be aware they are making a VOIP call.

This is the view of David Li, director of regional marketing at Huawei, which has deployed more than 100 commercial VOIP networks around the globe.

"The line will become particularly blurred in terms of international calls, and I believe the local market is set for significant growth, as more players begin to take advantage of the deregulation of the industry," he says.

"Based on VOIP, data and voice convergence is facilitating new business processes, which are enabling companies to work more effectively."

Li says video communication can now also be done using a desktop phone with VOIP capability, and that the quality and reliability are excellent.

"This has brought a new dimension to fixed-line communications and has dramatically reduced costs."

He claims that within the next five to seven years, large telcos will begin to enter the VOIP market, and it is even possible that SA`s fixed-line monopoly could be tempted to play in this space.

"We will see the service being extended to wireless and there will also be further worldwide deregulation as countries start to witness the benefits of VOIP," says Li.

He says this will contribute to stimulating economies while at the same time providing opportunities for telcos to increase revenues through added services such as providing increased bandwidth.

"A case in point is SA, where VOIP is encouraging users to move from dial-up Internet connectivity to ADSL, and I expect VOIP users to increasingly demand more bandwidth as they experience VOIP, which will also be to the benefit of the incumbent operator."

While Telkom has not as yet indicated what its exact position is in terms of any possible future VOIP strategy, the company has indicated that part of it strategy moving forward does include moving to an IP-based network.

At the release of the group`s annual results last week, CEO Sizwe Nxasana stated that Telkom intended to move to a predominantly IP-based network, giving it the ability to offer converged services such as voice, data and video services.

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