International LD Trends and Traffic Volumes Q1 2008 Report (2 of 3)

International voice traffic growth is slowing after decades of rapid growth. Deregulation, falling call prices, and rapid mobile subscriber growth helped to sustain the long boom. Recently, however, the effects from these factors have petered out: international calls grew only 10 percent in 2006, and the signs point to sluggish growth in 2007. Skype and other computer-based voice services are a key reason for the slowdown. Skype only accounts for a small share of international calls. But they are generating enough volume to have a clear impact on the growth rate of traditional calls. This trend presents a challenge to international carriers. With average international calling prices 70 percent lower than they were 10 years ago, scale has become an ever more important consideration. Carriers depend on rapid traffic growth to offset falling prices. Slower volume growth hurt carriers. revenues, and will almost certainly force further consolidation in the international long distance market.

Recorded at Voice Peering Forum
(c) 2008 Stealth Communications

Part 2 of 3

Category:

Science & Technology

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