Europe?s biggest telecoms operators will lose almost $400 million in revenue to the internet by 2001, as businesses use the Net to make international calls instead of the telephone.
According to telecoms consultancy Phillips Tarifica ? in a study called The Net Effect: The Impact of the Internet on World Telecommunications Markets ? BT, Deutsche Telekom and France Telecom will see $105 million, $173 million and $94 million respectively, wiped off their revenue sheets in 2001.
In the UK, this could lead to total international call revenue losses of between #90 million and #135 million by 2001. It was estimated that 10 million UK online users will use the Net for voice and other forms of communication instead of conventional telephony.
Deutsche Telekom will see a larger dent in revenue because of the larger price differential between international and local calls, which makes the internet an attractive option.
Phillips Tarifica calculated BT will lose $55 million in the home market and $50 million among business customers.
?The cheapest per minute call rate from the UK to the US is around 10 pence. By 2001, [with the use of] an internet phone, this could be reduced to as little as two pence per minute,? said the report.
- The European Commission (EC) has asked the US government to provide a statement of policy on the issue and to include it in urgent discussions. The EC has criticised the International Ad Hoc Committee ? which together with the Internet Society is spearheading proposals to open up the business of registering new site names ? for excluding European representatives from its discussions and membership.
Telco also announced series of initiatives to drive digital growth in the UK
Nana Baffour opens up on Getronics' mammoth acquisition of Pomeroy
Analyst predicts SaaS will remain the dominant segment in the market as it grows 17 per cent in 2019
NSS Labs claims vendors are refusing to have their products tested effectively and are trying to restrict its access