The Diffusion of IP-Telephony and the Vendors Commercialisation Strategies

IP-telephony has been presented as a technology which can replace existing fixed-line services and disrupt the telecommunications industry by offering new low priced services. This study investigates the diffusion of IP-telephony in Denmark by focusing on vendors’ commercialisation strategies. The theory of disruptive innovation is introduced to investigate vendors’ perceptions about IP telephony and explore their strategies which affect the diffusion process in the residential market. The analysis is based on interview data collected from the key market players. The study’s findings suggest that IPtelephony is treated as a sustaining innovation which goes beyond the typical voice transmission and enables provision of advanced services such as video telephony.