Embattled telecoms companies will not solve their problems by relying on demand for internet protocol (IP) technology, according to a report published by Dresdner Kleinwort Wasserstein and Cap Gemini Ernst & Young.

The report calls for a new sense of realism about IP. This is because, while demand for IP technology is still growing, telecoms companies are unlikely to see a short-term turnaround in fortunes based solely on this demand.