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UK Hosted VoIP Market Growth Slows February 12, 2013

Posted by Matthew Townend in VoIP Numbers.

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





1. Duncan Laker - March 4, 2013
2. Matthew Townend - March 4, 2013


Our feedback has started strongly the figures we published were for the last 6 months of 2012, interested in your thoughs on connectivity certainly the influence of EFM and FTTC are being seen by a lot of the providers we have met previously


3. Steve - May 23, 2015

The main driving factor for my business has been HD Voice and there’s now even talk about how IPV6 can finally overcome the dreaded NAT problem.

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