The International Experience

VoIP (Voice over Internet Protocol) is not a new concept. Both the idea and the technology have existed for some time. In recent years though, it has become one of the hottest topics in the IT and business arenas. The issues that have arisen around the world, particularly relating to implementation and usage, are also likely to surface in Australia in the coming years.

Usage and Demand

While knowledge and use of VoIP technology continues to increase in Australia, it is clear that we are still a few years behind the US and several other countries. The varying rates of adoption around the world though can be partly explained by the availability and take-up of broadband internet access which directly influences VoIP usage.

Internet telephony began to takeoff approximately five years ago and has progressed to the point where it is estimated that IP networks now carry over 20% of the world’s voice traffic. The technology is being adopted by various categories of users around the world including personal users, businesses of all sizes, and also the telecommunications industry as a whole. Last year for example, some of the larger telecommunication companies in the US (such as AT & T, Verizon, MCI, Time Warner Cable) all announced major rollouts to expand and deploy VoIP networks. Likewise, major telcos in other countries (like the British-based BT and also Bell Canada) have made commitments to implement VoIP solutions and rework their whole telephone networks.

Expenditure around the world on IP networks and VoIP solutions is expected to double every year for the foreseeable future. Research in the US has also indicated that nearly 30% of businesses have moved, or intend to move, to VoIP within the next 2 years. This is estimated to reach near 50% by the end of the decade.

Regulatory Issues
The popularity and increased usage of VoIP has also raised some important issues to be addressed by governments all around the world. In particular, governments are trying to determine how to classify and regulate VoIP. The US Federal Communications Commission (FCC) has been holding an enquiry to determine the regulatory environment in that country. The European Commission and Canadian Government are also reviewing this issue. Governments and individuals in Australia will also have to come to terms with these types of issues as VoIP gradually becomes more commonplace in businesses and households across the country.

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