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VoIP Switch - Business VoIP and PBX Catching Fire
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Business VoIP and PBX Catching Fire

 
October 30, 2013
By Mae Kowalke, TMCnet Contributor
 

Residential VoIP services make up the lion’s share of VoIP revenue, but it is the business side that is fueling growth.

That, at least, is the finding of a recent Infonetics (News - Alert) Research report on the state of VoIP and unified communications.


“The VoIP services market is on track with our expectations for 2013,” noted Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics Research (News - Alert). “Residential VoIP services make up the majority of revenue, but growth is being fueled by business services as SIP trunking and cloud unified communications continue to expand and find broader adoption with enterprises of all sizes.”

In the first quarter of the year, global VoIP services revenue rose 3 percent to reach $33 billion, according to Infonetics. The company predicts that business VoIP service revenue worldwide would grow by roughly 7 percent CAGR through 2017, more than twice the 3 percent it predicts for residential and small home/office VoIP services.

This is being fueled by hosted PBX (News - Alert) and unified communications, Infonetics found, particularly from enterprises that are migrating from traditional, on-premise PBX solutions. SIP trunking has spiked 23 percent over the second quarter of last year.

Many operators have already begun integrating VoIP on the backend to drive cost savings, but those savings often are not being passed on to consumers. This trend won’t last, however, at least according to Rob Lith at MemeBurn.com.

“The writing has been on the wall for a long time,” noted Lith. “Globally as well as locally, operators have seen the light. In South Africa, for instance, Telkom, Vodacom (News - Alert), MTN and Cell C are all putting in IP networks, and it is only a matter of time before they switch over to IP.”

But offering competitive VoIP services will require a good backend and good design.

“To offer a reliable VoIP service, providers must be able to offer excellent network design at the customer premises, data centre redundancy and managed access,” he noted. “All of these are complex fields in their own right, and require a wealth of experience and a high level of proficiency.”

Going forward, operators will need to ensure that they have proactive responsiveness, delivering network monitoring that discovers and reduces outages in real-time. They will need voice prioritization to guarantee quality of service. They will need call access control to ensure low latency and guaranteed delivery. Also, good VoIP networks are self-healing, allowing critical real-time voice packets continue to reach their destination.

The trends point toward business VoIP being a big opportunity, but only if operators are ready for it.




Edited by Blaise McNamee
 
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