Earlier today I posted a comment about Earthlink's foray into WiFI and VoIP. Some have speculated that they may be cutting into their own revenue stream, but most of us see their move as a smart one.

Here's a story that leads me to think much the same from a European perspective. The traditional telcos have long seen VoIP as a threat. I'd say VoIP is only a threat if you're stuck in the legacy of TDM telephony and not lookng to grow and expand your business into new technologies and services. And yes, that's true of many a telco.

Moody's Investors Service is reporting that while VoIP will erode revenue, the impact will be small - they're saying marginal in 2010. Moody's is also saying that any revenue loss will be offset by broadband products and services and by mobile telephony. The really key point for telcos - a quote from Moody's Senior VP and report author, Carlos Winzer -

VoIP no threat to Euro telcos - Moody's
Marie-Louise Moller in Frankfurt
JULY 07, 2006
THE ratings outlook for incumbent European telecom companies is stable and new technology, like internet-based telephone services, poses little threat to the sector, according to a Moody's Investors Service report.

European telecom firms are seeing their traditional fixed-line telephone business shrink as more people switch to mobile phones. They are also under pressure from smaller rivals offering cheaper phone and internet services.

But Moody's said that while VoIP (voice over internet protocol) would erode revenue, the effect would be small, and any losses would be offset by broadband internet products and services and mobile telephony.

"The percentage of traffic which will be on voice over IP is going to be marginal, meaning somewhere between 5-10 per cent in 2010," senior vice-president at Moody's and author of the report Carlos Winzer said.

"For an integrated operator, the upside of wireless plus the contribution of broadband overall will compensate for the marginal threat of voice over IP," Mr Winzer said.