Voice over broadband won't be big in Europe

Voice telephone calls that use broadband internet connections instead of traditional circuit-switched phone connections won't have a big impact in Europe over the next three years.

Research from Analysys forecasts the market for so-called voice over broadband (VoBB) will be worth €1.3bn in 2007, with small businesses using this application of broadband more so than homes.

Household interest will be limited, the consultancy notes, because broadband penetration will still be lower than in the Japan, South Korea and the US by that time.

Another reason is that in Europe, carriers that dominate broadband provision - usually using DSL - also still sell most voice minutes, so there is little incentive for them to cannibalise their established businesses.

Finally, in Europe there is also a competitive and often low-priced market for fixed line voice calls, making VoBB less attractive.

However, Analysys' latest report notes DIY voice over IP - typically making use of a broadband connection whether over cable or a copper phone line - could be disruptive to existing telco approaches in the long term.