Report: VoIP Business To Top $3 Billion By 2010

The business VoIP market will hit $3.3 billion in service revenue by 2010, according to a Yankee Group report that was released Tuesday.

The market research firm said the lion's share of the anticipated revenue growth will stem from hosted VoIP in which enterprises find appealing the migration from legacy systems to managed IP solutions without the incurrence of capital expenditures. Hosted VoIP saves on equipment and infrastructure upgrades as well as on management contracts, Yankee Group explained.

"Virtually all major carriers, systems integrators and equipment vendors now offer different varieties of business VoIP services," said Taher Bouzayen, senior analyst, U.S Telecommunications Strategies, in a statement. "And those that are not already exploring ways to capitalize on this revenue opportunity need to start now."

Another area of VoIP business growth cited in the report include VoIP over VPN, which is attractive largely because it saves long-distance toll charges. The market research firm also noted that VoIP real-time QoS bandwidth is an attractive market segment because it provides real-time voice, data, and video applications.