Telecom operators worldwide are fast shelling out big bucks to acquire all-IP based networks that could support high quality data rich services including VoIP and IPTV.

According to a new study by ABI Research, network operators are beginning to evolve from their existing Public Switched Telephone Network (PSTN) arrangements and are rolling out all-IP next generation networks (NGN) instead.

The ABI study proposed that by the end of 2007, there will be full NGN standards for fixed and mobile networks that will allow IP-based services to be deployed on NGN. ABI Research analysts predicted that the process will require a cumulative investment of approximately $1 trillion and will be completed by 2015.

"As we move to the end of the decade, bandwidth-hungry services such as IPTV will need an IP infrastructure to support them. Operators will also want to control operating costs by moving all services over an IP network," said ABI Research analyst Ian Cox. "This will enable deployment of service delivery platforms and IMS (IP Multimedia Subsystem) in the network, streamlining operations and allowing new services to be introduced quickly."

"For operators, NGN allow services and transport in the network to be separated and to evolve independently. This will speed up the development of content and services, to the advantage of the whole industry," added Cox.