VoIP solutions taking off in Latin America

VoIP solutions are increasing in Latin America with the low cost involved one of the major factors, according to analysis from Frost & Sullivan.

The VoIP market had revenues of $72.3 million (£36.1 million) in 2007 and Frost & Sullivan estimate this to reach $625.9 million (£312.9 million) by 2012.

Other factors involved in the uptake of VoIP solutions were increasing broadband penetration and triple-play.

Traditional telephony operators are seeing their profits hit as a result.

"The growth of VoIP and IP telephony is one of the most important factors for a 2.8 per cent yearly dip in local revenues and a 7.9 per cent dip in long distance revenues in Brazil during the next six years," said Frost & Sullivan industry analyst Jose Roberto Mavignier.

However, despite the good news for VoIP providers, work still has to be done due to factors like bad end-user awareness and nearly non-existent pre-sale efforts.

"Improving the clients' understanding of technical and operational aspects and efficient pre-sales support such as physical points-of-service sales, customer service and new bundles of services will be crucial to make VoIP services more appealing to Latin American users," said Mavignier.