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Internet Telephony: August 14, 2008 eNewsLetter
August 14, 2008

Report: VoIP Service Revenue Up in 2007

By Anuradha Shukla, TMCnet Contributing Editor

According to Infonetics Research’s recent report, “VoIP Services and Subscribers,” worldwide revenue from hosted VoIP and managed IP PBX (News - Alert) services jumped 52 percent to $24 billion in 2007 after surging 66 percent in 2006. The communications market research firm expects this revenue to grow in the strong double-digits through at least 2011.

The report indicates that hosted VoIP services continue to outpace managed IP PBX services by far, and residential services are driving the market growth. Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research (News - Alert), noted that although VoIP services are being embraced by consumers worldwide, businesses have been comparatively slower in their adoption due to various roadblocks.
Machowinski emphasized that this is about to change, though, as technical issues are resolved. He cites that example of many PBX manufacturers that have already added SIP trunking interfaces to their equipment, and more recently, they've greatly expanded the list of certified service providers.
Adding that this is going to fuel the growth in SIP trunking services, Machowinski said that these kinds of developments will boost the overall VoIP business services segment for years to come.
“VoIP Services and Subscribers,” also reveals that the number of worldwide residential/SOHO VoIP subscribers grew 60 percent between 2006 and 2007, to over 75 million. Although Asia Pacific still leads, the largest gains were in North America and EMEA (Europe, the Middle East, and Africa).
According to Infonetics Research, Asia Pacific, which had been leading the VoIP scene for a few years, is now at par with EMEA and North America in 2007. EMEA is expected to break away this year and lead the market at least through 2011.
With 20 percent subscriber market share, Comcast is North America's largest consumer VoIP service provider. While France Télécom leads in the EMEA region, Softbank (News - Alert) leads in Asia Pacific, and Cableco and Vono Brazil are neck and neck in CALA. The research firm adds that business customer (vs. consumer) share of worldwide hosted VoIP service revenue will increase from 26 percent in 2007 to 41 percent in 2011.
Infonetics Research is an international market research and consulting firm serving the communications industry since 1990.
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Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.

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