Voice over DSL to generate $1.1 bln by 2009

According to Dittberner Associates, the Voice over DSL (VoDSL) equipment market will reach $1.1 bln by 2009 from just $256 mln in 2004. Although the telecom industry downturn delayed the previously anticipated high-volume VoDSL deployments, VoDSL began to take off in 2004 as ISPs in Japan, South Korea and few isolated European countries reported strong subscriber growth for VoDSL service. Dittberner forecasts the trend will continue and expects ISPs and later incumbent carriers to lead VoDSL deployments by 2010.

According to Dittberner, there were over 8.6 million VoDSL subscribers worldwide by the end of 2004, with the majority of customers served by a few operators predominately in Japan, France and S. Korea. Japan has highest VoDSL penetration rate of 35%, however its dominance is expected to steadily decline as other countries specifically in Europe catch up after its head start, offering services and developing marketing strategies that suit local market and regulatory conditions.