The Future of IP networks

31 August 2006

VOIP is taking a front seat in pushing new communication technologies across the region. By B Ashok, Sr VP, ITS, Cisco Systems India & SAARC.

The prophecy of Internet protocol (IP) being the universal carrier for all communication traffic is coming true. IP is the bedrock of the Internet, providing the foundation necessary for companies to become technological innovators. IP networks are developing rapidly across the Asia Pacific region due to a number of factors, including cost efficiencies, marked improvements in traffic control, quality of service and deregulation.

The most effective companies doing business in the Internet economy are applying internet protocol not only as a catalyst for technology innovation, but also as a platform to develop unique business models and competitive strengths. Because of the Internet, IP is everywhere. The ubiquity of IP and the evolution of the Internet have enabled scores of companies worldwide to capitalise on new market opportunities, generate new services, and develop a broader customer base.

As technology progresses, IP will unite the wired and wireless worlds. With IP networks, it will not matter if you have a wired connection or are communicating wirelessly, IP will be the common protocol of choice to deliver services and applications to every person on the street. With the advent of more and more IP-enabled devices, IP is becoming increasingly pervasive. As it becomes more integrated with people''s lifestyles, it becomes a basic need.

Voice over internet protocol (VoIP) made global headline news in 2004. It is clear that this technology is moving from an experimental stage to mainstream business. If one is to go by what market analysts predict, VoIP is growing rapidly as an increasing number of companies worldwide, develop roadmaps for VoIP implementation. The Asia Pacific (APAC) market also reflects this trend with Internet Protocol (IP)-based services such as VoIP driving growth in the region.

Therefore the big question is, with the rest of the world betting big on VoIP, can India be left far behind? Market research suggests VoIP is gaining momentum, with India expected to be the second largest VoIP market in APAC after China. IDC estimates revenues from VoIP services in India will touch USD 2.8 billion by the end of 2005.