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VoBB may struggle in Western Europe

CAMBRIDGE, U.K.-New retail voice over broadband (VoBB) services will struggle to establish themselves in the Western European voice market, according to a new ret from Analysys.

“Not only does broadband penetration remain stubbornly low in Europe compared with North America, Japan and South Korea, but broadband access continues to be dominated by operators that have a natural interest in minimizing the effects of VoBB,” explained Rupert Wood, author of the report. “This, coupled with a competitive and generally low-priced fixed calls market, limits the opportunity for VoBB.”

Analysys expects VoBB will garner 6.2 million consumer and small business users by 2007, generating $1.6 billion in revenue. “The threat to mainstream voice is not apocalyptic,” said Wood.

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