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Business VoIP Feature Article

December 22, 2011
Exact Ventures Reports that Business VoIP Helped to Extend Wireline NGN Voice Equipment Market in 3Q11
Business VoIP
By Rajani Baburajan, TMCnet Contributor

Business VoIP solutions are extremely beneficial to small and medium-sized businesses (SMBs). In addition, solutions such as cloud-based Session Initiation Protocol (News - Alert) (SIP) and virtual PBXs have enabled these businesses to deploy affordable communications services across their organizations.

While there has been rapid growth within the business VoIP market over the last year, VoIP services still comprise less than one quarter of fixed lines and a negligible amount of wireless lines, according to Exact Ventures, a market intelligence and advisory firm.

A recent press release revealed that the transition to VoIP is driving the growth of the Session Border Controllers (SBCs) and Value Added Services (VAS) market, says Exact Ventures' NGN Voice and IMS Core Quarterly Report.

In fact, the company has found that total next generation network (NGN) voice and IP multimedia subsystem (IMS) core market contracted 20 percent sequentially in 3Q11 to $1.5 billion, due in part by seasonal weakness, delays in capital spending, and volatility in the IMS Core market. 

"The SBC market continues to experience strong growth and to attract investment.  Metaswitch recently entered the market with its new Perimeta product line and Avaya acquired security and E-SBC vendor Sipera (News - Alert) to bolster its Aura unified communications portfolio and specifically its SIP Trunking solutions," said Greg Collins, founder and principal analyst at research firm Exact Ventures, in a statement.

Additionally, the growth of IMS core equipment market was significant. The market was up year over year, despite contracting on a sequential basis, according to the report. IMS continues to gradually displace NGN voice equipment, as voice-over-LTE (News - Alert) deployments begin to boost the market. The market is forecasted to continue to accelerate in 2012.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Jamie Epstein

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