Communications industry rebounding but Internet throws up new challenges, says OECD

The communications industry has returned to profitability but developments in Internet technology are challenging the role and business model of traditional telecoms companies, creating pressures for a new approach to industry regulation, according to the OECD’s Communications Outlook 2005. The growing popularity of Internet telephony, or Voice over Internet Protocol (VoIP), threatens the fixed-line revenues of traditional carriers, especially for international calls, the OECD report concludes. In addition, however, VoIP presents a challenge to mobile telephones, which in many countries are now more numerous than fixed connections.