Carriers talk up VoIP migration - Network IT Week

Carriers talk up VoIP migration - Network IT Week

It's a logical step for carriers to migrate to VoIP. Building a packet based network using IP (and specifically IP/MPLS to ensure QoS) costs about 40% that of legacy TDM (time division multiplexed) networks, so rather than upgrading TDM to cope with capacity demands it's cheaper to migrate to VoIP.

Once a carrier carries their own traffic over VoIP, they can interconnect using VoIP and as soon as they do that there's little difference offering VoIP to other 3rd parties too.

VoIP actually becomes an enabler such that carriers can then offer services to customers who normally would not work with carriers at all. The customer then can get better pricing, which then forces others to match i.e. overall pricing drops, more consolidation etc.