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UK IP/SIP Market Continue to Grow Strongly February 12, 2013

Posted by Matthew Townend in Uncategorized.
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illume completed its survey of VoIP Service provider in January, the survey showed that the SIP/IP trunking market shows no sign of slowing down with growth of 25% June-December 2012. The market was 757,928 trunks at the end of 2012, a growth of 60% year on year.

The survey saw strong performance among key players in the market and an increasing focus from Softswitch vendors such as Broadsoft, Genband & Cisco on the need for their story to incorporate SIP/IP trunks alongside Hosted services.

We explored with the providers what were the key customer drivers and although costs versus ISDN is still the most important there is an increasing understanding that other benefits such as “Flexibility” & “Business Continuity” are also key.  Among the providers serving the larger enterprises we also saw the importance of SIPT as an enabler for Unified Communications growing in importance.  

In the coming year we expect to see more focus on what applications can be layered on top of a SIP trunk,  and how Services Providers can really address Hybrid Hosted & SIP environments and bring benefits of Unified Communications to both traditional PBX & hybrid customer scenarios.

This year we saw a number of new entrants in to the SIP market and a number of new announcements. In December we saw the launch from Talk Talk business of their “Next Generation ISDN30 service” which caught our eye. In effect this service utilises a SIP network and a gateway to deliver a customer the choice to terminate; ISDN, SIP or a mix of channels, bringing the customer some of the flexibility and service benefits associated with SIP to a traditional ISDN environment. We have seen this approach used in other international markets; recently we have been working in the South African market where a number of competitors to Telkom used this approach to attack existing ISDN market, effectively offering like for like services.

One of the other issues on everybody’s lips has been what the impact of Microsoft Lync is, our survey showed that less than 20% of providers had tested with Lync. The providers who have been approved for Lync, indicated that although they had seem some business coming through it was still a relatively small percentage of their overall base, although having the capability had opened up a number of customer discussion they may not have had if they were unable to offer such a capability. Microsoft are clearly generating a lot of enterprise interest behind Lync but its still unclear if it will really replace the PBX.

2013 Forecast & Report

illume and its parent company Cavell are investing in its research capability this year and plan to expand its portfolio and team . On the 19th of February we will launch our annual Hosted VoIP Forecast and report & our SIP/IP trunking report & forecast both of which will enter into more detail on the issues discussed above as well as providing our forecast for the market. If you would like to find out more about Cavell or our research capabilities please visit www.cavellgroup.com or email Matt Townend matthew.townend@cavellgroup.com

UK Hosted VoIP Market Growth Slows February 12, 2013

Posted by Matthew Townend in VoIP Numbers.
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illume has just undertaken its 6 month VoIP  service provider survey, which showed in December 2012 the business Hosted VoIP market broke 1 million seats reaching 1,061,898.

In the last 6 months we have seen the overall Hosted market growth slow to 6.3% from June to December 2012 compared with 15.7% for the same period last year.  Providers particularly commented on a slow summer and December, but with some reflecting on an encouraging start to the New Year.  Factors affecting the growth appeared to fall into the following areas:

  • General slowdown with providers commenting on poor activity in the summer months (maybe Olympic effect) and December
  • Some specific providers reporting that they were stalling and some even showing churn
  • Key providers migrating to new platforms in the last 6 months, this  may have slowed their focus on growth.
  • New entrants with Cisco HCS & Microsoft Lync yet to make impact

In general the market is moving from a early adopter and niche market into a more mainstream position. This may well lead to challenges for certain players who may have been traditionally technically focussed, and now need to have more of a go to market focus as they need a much more focussed channel and marketing strategy.

The survey also pointed to a number of other key trends:

Access still key and importance of EFM & FTTC growing: Providers indicated that although DSL was still the key mechanism for delivery, they were where ever possible utilising EFM and to a lesser extent FTTC as their preferred delivery mechanism. A number of providers mentioned that the availability of these access types was key to the growth of the market, as it was  still patchy in a number of geographic areas.

FMC key focus area: In terms of product features the main area of new development that service providers mentioned was (FMC) Fixed Mobile Convergence, whether it was the implementation of Wi-Fi client technology or full IMS type integration it appears to be a priority of most service providers.

CRM Integration: The survey showed that one of the key areas that providers had been focussed on in the last 12 months was CRM integration of different types.

HD Voice still to gain wide acceptance:  A lot has been written and spoken around the requirement for HD Voice services, our survey showed around 23% of service providers claimed they currently offered a service and around another 45% planned to in the next 12 months. In the interviews we undertook HD Voice was perceived as a nice to have, but not a pressing item that was winning or losing deals.

2013 Forecast & Report

illume and its parent company Cavell are investing in its research capability this year and plan to expand its portfolio and team . On the 19th of February we will launch our annual Hosted VoIP Forecast and Market Report & also our  SIP Trunking report,  both of which will enter into more detail on the issues discussed above as well as providing our forecast for the market. If you wish to find our more about the  reports or Cavells skills and capabilities please contact Matt Townend matthew.townend@cavellgroup.com or visit http://www.cavellgroup.com