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March 7, 2001



Internet telephony encouraged

By Frances Williams in Geneva. Published: March 6 2001 20:43GMT | Last Updated: March 7 2001 10:00GMT. Financial Times

Developing countries will be urged to embrace rather than restrict the new internet telephony technologies at a policy forum hosted by the International Telecommunication Union which starts in Geneva today.

Though internet-protocol (IP) telephony accounted for only 3.2 per cent of international calls (3.8bn minutes) last year, some analysts believe that proportion could jump to as high as 40 per cent by 2004.

IP telephony, now being used or developed by about 100 countries, cuts costs for both consumers and telecoms operators. However, according to the ITU, some 35 mostly developing countries, among them Cuba, India, Nigeria, Thailand and Turkey, ban voice and sometimes fax communications over IP-based networks, mainly because the dominant, often state-owned, carriers fear erosion of revenues.

Because IP telephony largely bypasses the public switched telephone networks (PSTNs), it also tends to escape the existing regulatory and financial framework.

PSTNs establish a temporary end-to-end connection for the duration of a call, including the dead time between speech, while IP telephony breaks up telephone conversations into tiny digital packets which hop from space to space along the network.

This makes it possible to carry far more voice and other digital transmissions on the available bandwidth.

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