Get Ready For Video-Over-IP
A video delivery revolution may be driven by Ethernet and voice-over-IP.
by Keith Dawson
CommWeb.com
09/03/02, 11:03 a.m. ET
One analysis of the burgeoning voice-over-IP industry suggests that this technology is setting the stage for a wide variety of video-related applications that run over on corporate LANs. In fact, Ethernet technologies are beginning to usurp applications in the professional video arena that had previously been the exclusive province of specialized, or proprietary, networks.
That is according to researchers at In-Stat/MDR, who posit that many users of video conferencing equipment are in the process of converting their existing ISDN infrastructure over to IP infrastructure, resulting in an uptake of IP-based services. This will cause a slowdown in the use of legacy ISDN services through 2006.
The market research firm projects that ISDN-oriented video conferencing services revenues will experience a Compound Annual Growth Rate (CAGR) of only 6% while IP services will grow at about a 43.5% CAGR, topping $2.5 billion in 2006.
"Once a corporate LAN is ready for voice-over-IP, it will be a short step to make segments of that network capable of Video over IP services," says Gerry Kaufhold, a Principal Analyst with In-Stat/MDR. Corporate LANs all run on Ethernet, and Ethernet is poised to become available outside corporate confines, through industry initiatives such as Metro Ethernet Forum and Ethernet in the Final Mile Alliance.
Three key areas In-Stat says will be effected are: the distribution of live broadcast quality video content over various specialized networks; corporate conferencing and collaboration services; and interactive "on demand" streaming applications.
"Low entry-level cost points for Ethernet solutions for distributing video will impact the existing manufacturers, who currently provide 'big ticket' video equipment," says Kaufhold.
Also, advances in middleware coming from the videoconferencing and satellite video markets, will create new business opportunities for large, global IP backbone providers, and local competitive telecommunications carriers. According to Kaufhold, "Large local and long distance telephone players will need to be on their toes to move with these changes, or face further erosion in the total available market for voice and video services."
In-Stat/MDR also found that as the migration to IP progresses, the typical hourly rate for video conferencing calls will gradually drop from an average of about $45/hour in 2001, down to about $35 per hour by 2006.
