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Ofcom’s Communication Report 2013 confirms illumes latest research figures August 29, 2013

Posted by Dominic Black in Uncategorized.
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After publishing illume’s latest research results on the SIP and Hosted market, we have been able to cross reference our results against what Ofcom have seen in the telecoms market and we have seen them match the figures that illume predicted.

In the last year, Ofcom recorded a fall in ISDN channels from 3.6 million channels in 2011 to 3.3 million channels in 2012. In that same period, illume’s data which we had collected from our surveys with service providers showed an increase of 311,949 SIP trunks. 

Another interesting point from the report that we saw was that voice revenues have been falling faster than we expected.  We had expected to see the voice revenue fall by about 2% but we are now seeing the fall in minute pricing driving down voice revenues and the figure is more like 4%.  It is surprising as we were expecting to see a more gradual decline and it will be interesting to see if this trend continues in the future.

Broadsoft’s purchase of Hipcom signifies major change for the UK Market. August 13, 2013

Posted by Matthew Townend in Uncategorized.
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Broadsoft have announced this morning the acquisition of HIPCOM in the UK. Hipcom has been a major channel provider of Hosted Voice and SIP Trunking services to many companies including BT. Hipcom’s strengths included their own innovative cloud integration capabilities, as well as having a significant market presence in terms of channel customers and end customer seats. The acquisition does however call into question Broadsoft’s position with some of its existing UK customers who it may now be seen as competing directly with. These include; Gamma, The Voice Factory, Vanilla IP and Daisy.

illume research analyst, Matt Townend commented:

“The acquisition will bring to Broadsoft much needed integration capabilities which will be an asset to a number of its global customers and also a platform and infrastructure in the UK which may enable it to offer an end-to-end service to some of its customers. However, it does bring into question how it will position itself against its own customers who currently serve the UK market notably providers such as Gamma & Daisy.”

As the story evolves we will look to get further comment from those affected.

Press release:

http://www.marketwire.com/press-release/-1820141.htm

Hosted Market growth bounces back from poor end to 2012 August 1, 2013

Posted by Matthew Townend in Uncategorized.
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Following illume research’s recent survey; we have seen the hosted VoIP market add 90,842 seats (8.55% growth) since December 2012 compared with 66,839 seats in the last two quarters of 2012.

With the market experiencing a slowdown when we last did the survey, it is showing encouraging signs of growth with all providers in the market demonstrating growth again, even those who had stagnated in the last 6 months of 2012. Large providers who migrated platforms last year have been important to the increased growth in the market as their growth has picked up again although not as much as we expected in some sectors.

Growth has not been as fast as we predicted previously but we are seeing new entrants to the market who are supporting growth. The introduction of some larger players such as Exponential E and RingCentral in the next few months we can see this having an impact in the future.

We are seeing the emergence of more advanced hosted UC services being offered. Providers are looking to drive revenue by not just selling core hosted features such as dial tone or voicemail but adding hosted UCC on top such as presence and CRM integration. Mobile integration is becoming a key interest area for many providers, although it hasn’t seen huge uptake yet it will be something offered in the future and has the potential to be a significant feature for some customers.

After the many recent articles pronouncing the death of PBX, illume have seen that the PBX is fighting back by repositioning the PBX around UC as well as offering Hosted benefits. UK PBX shipments appear to be rallying and MZA have reported the same in the US, which we see as a reason for the continued slow growth of hosted. As the Hosted market matures, providers will be not just be competing with PBX/ISDN but against other providers. Differentiation between feature sets will then become more important for providers instead of price differentials.

As the hosted market has slowed down in the last year, illume found it important to look at where growth was coming from in terms of new customers. We found that due to the differences in handsets, lack of porting agreements and the difficulty in implementing platform migration meant that customers had to overcome significant barriers to change; hence churn was relatively low.

2013 Forecast & Report

illume and its parent company Cavell has increased their research capabilities in 2013 with Dominic Black joining the team as a Market Analyst. In August 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.illumeresearch.com or email Matt Townend matthew.townend@cavellgroup.com or Dominic Black dominic.black@cavellgroup.com

UK IP/SIP Market continues to grow in first half of 2013 August 1, 2013

Posted by Matthew Townend in Uncategorized.
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illume has finished its biannual survey of the UK VoIP provider market which saw continued growth in the SIP/IP market although growth did slow down from previous estimates. The market has added 129,791 trunks since December 2012 to reach a total of 889,966 trunks, a growth rate of 17.1% compared to 26.6% growth in the same period in 2012.

Growth has been driven by a number of key providers who have seen their position in the market strengthen from 2012. The rest of the providers did also see growth but it is the larger players who continue to drive growth in the market.

The number of providers in the market continues to grow with over 55 SIP/IP providers now offering services. In the future we might see some of these providers start to merge as the market saturates although M&A activity has remained low in 2013.

More providers are using EFM and fibre as their preferred delivery mechanism and illume predicts that the fibre rollout across the UK will become a key driver for SIP/IP services and will be key to the success of SIP. With 54% of UK businesses having the potential for a fibre connection in 2014, we predict that this could see the SIP market start to reach its full potential. EFM is also becoming a key delivery mechanism but due to costs in rural areas and above a certain number of seats, it is not always cost effective.

As the market has evolved, illume are now differentiating the SIP market by dividing it into three different types of service offering:

  • SIP I (Infrastructure)
    • SIP I is where a service provider is using SIP to connect services within their own infrastructure.
  • SIP A (Application)
    • A SIP Trunking service that focuses on giving the customer access to additional UC applications, including Mobility, CRM, Recording etc. Often sold to customers wishing to have a migration to a hosted solution.
  • SIP C (Capacity)
    • A SIP Trunking service that is focused on providing a scalable, flexible Voice access service. Providers offering SIP C type service are focused on offering high capacity and highly resilient SIP access, and less focused on offering access to UC type applications.

Security is also becoming a more important issue for many SIP providers as most have be subject to attacks over the past 12 months. Issues arising from this are usually directed around where the responsibility lies; for example, who opened the PBX? Most providers are offering services that analyse usage patterns to try to reduce the cost of attacks and provide some protection for customers.

2013 Forecast & Report

illume and its parent company Cavell has increased their research capabilities in 2013 with Dominic Black joining the team as a Market Analyst. In August 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.illumeresearch.com or email Matt Townend matthew.townend@cavellgroup.com or Dominic Black dominic.black@cavellgroup.com