North American Business VoIP Access and SIP Trunking Markets Face Consolidation

With the increased popularity of business VoIP, the market for VoIP access and SIP trunking is continuing to expand. In 2011, VoIP access and SIP trunking services reached deeper than ever before into large enterprises, according to a recent report from Reportlinker.

The growth of business VoIP and SIP trunking services is driven by business’ migration to an end-to-end IP-based unified communications (UC) infrastructure. These services enable organizations to eliminate legacy telecom interfaces.

Compared to 2010, service providers saw over twice the penetration rate into large enterprises, with small and medium-sized businesses (SMBs) still remaining strong. Despite this growth, increasing competition is driving prices down. The fall in price boosts demand but limits revenue potential. While the market increased in terms of installed users, revenue is expected to steadily rise over the forecast period as well.

The VoIP access and SIP trunking services market is also experiencing a significant wave of consolidation, with a large number of mergers and acquisitions throughout 2011, findings show. While the industry witnesses the entry of new competitors through acquisitions, existing players are expanding their current positions by acquiring competitors.  

In this highly informative study, Reportlinker discusses market drivers, restraints, and trends. It also provides market share analysis and competitor assessments in addition to a market forecast in terms of users and revenue. This analysis covers the North American market for the period 2011 to 2017.

A noteworthy trend prevailing in the VoIP access and SIP trunking market is the shift from the early-adopter, proof-of-concept phase into mainstream enterprise deployments. While the adoption of business VoIP is strong across businesses of all sizes and across virtually every vertical, medium and large businesses have become more comfortable with VoIP technologies as of late.

The report also notes that even without IP telephony upgrades on the enterprise premises, customers are increasingly realizing the flexibility and cost-savings benefits of VoIP access and SIP trunking services and are using media gateways to connect these IP-based services with legacy platforms.

Want to learn more about SIP Trunking and how to integrate it into your current UC strategy? Don’t miss the SIP Trunking- UC Seminars in South San Francisco on November 27, 2012.

Edited by Jamie Epstein