Abstract

The emergence of IP telephony as a lower-priced alternative to fixed-line telephony has created a new market in the telecommunications industry. This paper presents a study of vendors' views on the key value elements of IP telephony affecting the diffusion process. The major national IP telephony vendors of a technologically advanced market – Denmark – are interviewed. The results indicate that IP telephony vendors acknowledge the importance of price, and underline physical and information investments as the main challenges. However, the vendors have shifted their attention to the development of value added services such as video telephony for business users.

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