Consolidation in Business VoIP Resulted in New Leadership: Infonetics Research

Telecom service provider Verizon and New Global Telecom are the leading business Voice over Internet Protocol (VoIP) service leaders, according to Infonetics Research.

The findings are a part of market research firm Infonetics Research’s recently released “North America Business VoIP Services Leadership Scorecard.”

The annual report analyzes and ranks the top service providers in the hosted VoIP/UC and IP connectivity markets.

Despite the ongoing merger and acquisition activities in the business VoIP service market, there are more than 100 service providers in North America,  according to Infonetics report.

Telecom major Verizon Business is the market leader for IP connectivity for the third year in a row. Cbeyond, Comcast, and XO are among top the IP connectivity providers.

New Global Telecom is the top in hosted VoIP and UC services list for the third straight year. 8x8, Smoothstone, and Verizon Business  are also among the top hosted VoIP providers.

As many as four providers landed in the top 10 list of hosted VoIP providers for the first time this year due to their merger and acquisition activity, providing them with the necessary scale to maintain services.

“In the past 12 to 18 months, there has been a wave of consolidation in the business VoIP space, including M&A activity by 5 of the top 10 hosted VoIP leaders that resulted in some changes to leader list, with New Global Telecom again coming out on top, due to its expanding installed base of seats and the financial stability of its parent company, Comcast,” said Diane Myers, directing analyst for VoIP and IMS at Infonetics Research.

“In the IP connectivity space, Verizon Business continues to lead the pack. The top 10 providers in each category represent a broad mix of providers; however, the most critical factors for success remain financial stability, proven experience, and quality service and support,” Myers added.

The Infonetics report identifies service providers currently leading the hosted VoIP and IP connectivity markets and those best positioned to succeed long term. The matrix rankings are based on criteria such as installed base of lines/trunks or seats, financial stability, market strategy, service capabilities, and support options.

According to   Infonetics Research’s fourth quarter 2010 “Service Provider VoIP Equipment and Subscribers” market share and forecast report, 42 percent increase in session border controllers (SBCs) has boosted the carrier VoIP market in 2010.

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

Edited by Rich Steeves