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Government Red Tape Could Hold Back VoIP Revolution

14 December 2004

More than 20 percent of leading telecom players across Europe have singled out government regulation as the most significant threat to the successful deployment of VoIP.

This is the leading result of a survey conducted by Spirent Communications(TM) (NYSE:SPM; LSE:SPT), The International Engineering Consortium (IEC) and Total Telecom magazine at the recent Broadband World Forum event in Italy. The study also revealed that an overwhelming 85 percent of voters think that the VoIP revolution has begun. Furthermore, 84 percent of respondents believe that VoIP is ready for widespread deployment. Companies attending the forum included: Telecom Italia, Siemens, BT, Cisco, Telefonica, and Alcatel.

The same poll was carried out in the U.S. at the SUPERCOMM 2004 show in Chicago last June and at the recent USTA TELECOM '04 show in Las Vegas. The main findings from these shows contrasted starkly with the results from those in Europe. For example, Americans ranked quality issues as a far bigger hurdle to successful VoIP deployment than government regulation.

Voters also were asked to rate which service providers will be successful at deploying VoIP. BT ranked high on all three polls, capturing 16 percent of the votes at Broadband World Forum. The remaining votes were fairly evenly divided between five carriers: Fast Web, Telecom Italia, France Telecom, Skype, and Tiscali. Each carrier garnered between 7 percent and 12 percent of the votes.

"Our results highlight the increasing usage of VoIP in the workplace and in homes," said Rob Chambers, publisher of Total Telecom magazine. "VoIP access at home is more available internationally than in North America - with 55 percent of respondents in the former category having VoIP access at home, compared with 45 percent in the US. Overall, the poll results are aligned with what we have been hearing in the industry, namely service providers intend to make IP networks and services the technology of their future."

"As we predicted, the international 'Vote for VoIP' poll produced some insightful results. Attendees of the Broadband World Forum are industry leaders who are instrumental in shaping the telecom landscape and will be fundamental in achieving widespread VoIP adoption," said John Janowiak, senior director, IEC.

This press release may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause Spirent's actual results to differ materially from those expressed or implied by these statements. These risks include the risks described from time to time in Spirent's SEC periodic reports and filings. We undertake no obligation to update our forward-looking statements, whether as a result of new information, future events or otherwise.

Spirent Communications, Rockville
Penny Mitchell, 301-590-3536
Penny.Mitchell@spirentcom.com
or
Lewis PR
Gillian Salvage, +44 (0) 207 802 2626
gillians@lewispr.com
or
Jonathan Dinkeldein, +44 (0) 207 802 2626
jonathand@lewispr.com
or
Environics Communications
Marcie Cheney, 202-296-2002
mcheney@environics-usa.com

Source: Business Wire


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