Market Trend

International calling prices continue to fall

The move to outsource international voice is underlined by the price erosion demonstrated in a Telegeography report.

The world average price of an international phone call has fallen more than 80% over the past 15 years, and declined a further 7% in 2007. Despite the steady erosion of prices, aggregate retail revenues from international traffic nudged upwards, from $74 billion in 2006 to $78 billion in 2007, according to Telegeography. A comparison of volume increases with price decreases reveals why worldwide revenues have trended upwards: traffic growth has remained relatively stable, while the rate of price declines has slowed.

Telegeography projects that global international voice traffic will grow approximately 11% to 12% annually between 2008 and 2010, with aggregate volume growth narrowly offsetting retail price declines. While aggregate revenues from international voice will probably remain stable for a few more years, industry trends suggest that challenging times lie ahead.

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