A cost analysis of the voice over internet protocol industry | |
| Author | Najnudel, Jean-Samuel |
| Call Number | AIT RSPR no.SM-04-44 |
| Subject(s) | Internet telephony--Costs Telecommunication--Costs |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;|vno. SM-04-44 |
| Abstract | A few years ago, operating international calling services was only possible for the biggest telecommunication groups. To be an operator, a company needed to interconnect hugely expensive telecommunication infrastructures in each country where it needed to terminate its calls. Now, thank to Internet telephony, a small office and a few thousand dollars of equipment can allow a film to start a telecommunication operator business. Today, almost any small telecommunication company can te1minate international calls. In the last two or three years, in almost every country in the world, thousands of small operators started their Voice over IP call te1mination services. In fact, the economic structure of the market radically changed. Now, we can notice a very aggressive competition between quite small operators. It allowed low cost services and a fast growth of the industry. Today, customers can get cheap international calls and Internet telephony firms take benefits from the growing call volumes. However, this emerging competition critically decreases the margins of these new operators. After conducting a cost analysis, we will show that being a VoIP call termination provider is not always a so profitable business. Then, we will try to explain which companies can still be successful and why. In fact, our study will lead us to conclude that very large volumes are necessary to make quite significant profits. As a result, only the firms that are able to achieve sufficient economies of scale can be trnly successful. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-44 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Donyaprueth Krairit; |
| Examination Committee(s) | Zimmermann, Willi ;Dimmitt, Nicholas; |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 2004 |