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VoIP growth recognised in OFCOMs Comms report August 19, 2010

Posted by Matthew Townend in Uncategorized.
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Ofcom has just launched their annual communications report, which is probably one of the most important pieces of annual research in the UK market.

In the report this year we see the first signs of VoIP becoming an accepted medium with both strong demonstration of business and consumer usage. In their survey they state that 17% of adults say they are currently using (VoIP) services.

Also we saw significant erosion of traditional business voice revenues, and the clear indication that these were switching to VoIP revenues.

A reported 4.2% decline in ISDN30 lines, to 3.2 million in 2009, as well as a 4.8% fall in ISDN2 lines, to 1.2 million. However ofcom stated that this was “A reflection that businesses are starting to move away from ISDN technology towards cheaper and faster broadband connections for internet access and voice over IP (VoIP)”

We also saw significant decline in traditional fixed voice calls and revenues, with business calls falling by 4.5%. This was also demonstrated in a overal fall of  3.1% in fixed voice revenues. Both these figures showed an acceleration in decline seen in  previous years. Also we saw a dramatic decline in the number of analogue lines deployed with this figure falling to 4.8 million, a year on year decline of 5.6%.

All these figures and statements indicate that during this recession we are starting to see a real growth in the impact of VoIP services against the traditional market. With potentially SIP trunking starting to erode ISDN and Hosted VoIP attack some of the traditional lines and call so prevalent in the SME market.

In the coming days we will look to analyse the figures more deeply, but for the first time Ofcom are really recognising the potential impact of VoIP on the market.

For more detail of the report please goto http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr10/.

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