Cisco leads Australian VOIP market with 47% market share

According to analysis by Frost & Sullivan, Cisco now leads the business telephony market in Australia, with a 19.9% market share. The analysts covered all phones systems sold to businesses, including key telephone systems, traditional Private Branch Exchange (PBX), IP enabled PBX and Pure-IP telephony. In IP Telephony, Cisco continues to be the leading vendor in the Australian business voice market, holding a 47% market share, according to Frost & Sullivan.

26% of Global 2000 companies already deployed VOIP

Deloitte & Touche projected that by 2006 more than two-thirds of all Global 2,000 companies will have started deployment of VoIP to the desktop. While 26% of survey participants have already deployed desktop VoIP, only one-third of those companies have offered it to all employees. According to the report, 84% of the companies polled regarded cost reduction as a key driver toward implementing VoIP. Beyond cost, the study says, VoIP has the potential to transform enterprises’ call centers, offshoring operations and telecommuting tools. 79% of early VoIP adopters said that they are either mostly or highly satisfied with the technology to date.

Feds could save $4.5 bln a year by switching to VOIP

If government agencies at all levels started making voice calls over the Internet by using voice-over-IP technology, they could save around $4.5 bln a year, according to a research report being issued next week by the Alexis de Tocqueville Institution. nstitution researchers studied phone use and phone systems at more than 300 federal, state, and local agencies and concluded those agencies could save between 25% and 60% by switching to VoIP.

12.1 mln American homes to have VOIP by 2009

Voice-over-IP telephony will grow from approximately 400,000 U.S. homes in 2004 to 12.1 mln by 2009, according to a new report by JupiterResearch. The researchers said VoIP telephony will reach 10% of U.S. homes over the next five years. Additionally, the firm said that 17% of broadband subscribers will sign up for VoIP phone services.

Less than 1 mln US VOIP subsribers today, Vonage has 200K customers

More than a dozen companies currently offer VOIP services to U.S. residential customers. Most offer unlimited local and long-distance calls for $30 per month or less, with some as low as $19.95, although those fees do not include the broadband Internet connection that VOIP requires. Comparable plans for traditional service from the dominant U.S. telephone carriers typically cost about $60 to $70 per month. The rise of consumer VOIP has been driven by the growing number of U.S. households with broadband Internet access, as well as steep declines in the cost of the infrastructure necessary to run VOIP services.

Vonage, a New Jersey start-up, was able to garner more than 200,000 subscribers for about $103 mln in venture capital and raised another $105 mln last month for expanding into foreign markets. While industry experts estimate the current residential VOIP market has less than 1 mln subscribers, they expect sharp growth starting in 2005 as large cable companies such as Comcast Corp. roll out their VOIP services. Communications consulting firm Yankee Group forecasts VOIP services will win 17.5 mln residential users by 2008.

43% of companies to use VOIP within the next two years

Economist Intelligence Unit surveyed more than 250 senior executives and found that 43% were either using or planning to implement VoIP within the next two years, while a further 18% expected to deploy the technology in the long term. Executives’ interest in the technology is driven both by the perceived cost savings in network consolidation and by the wide range of possible IP telephony services and applications. While an overwhelming 87% of respondents cited telecommunications cost savings as an important factor in the decision to implement VoIP, an equally impressive 71% were motivated by the ability to deploy advanced IP telephony features.

By 2008 44% of corporate phone lines will be VOIP

IP telephony is poised for strong growth worldwide. Over the next four years, the number of worldwide corporate IP telephony lines will increase by over 260 mln ? nearly 14 times the current installed base. Revenue in the corporate IP telephony market will total nearly $1.0 bln in 2004. Over the next four years, this revenue will increase substantially, reaching $5.5 bln in 2008.

Although overall VoIP revenue will continue to rise annually, the price per user of IP telephony will decline as the technology proliferates. Uptake for IP telephony will be greatest in large corporations. Most of these companies will deploy Hybrid PBX systems, which include both IP and traditional TDM technology. Pure IP-PBX deployments will take place primarily in small corporations and greenfield environments.

130K VOIP subscribers in 2003, 17.5 mln by 2008

In 2003, the residential local VoIP market grew more than tenfold from about 10,000 local phone subscribers to more than 130,000 by year end. Today, Vonage, an alternative voice provider, largely dominates the industry. However, U.S. MSOs have been a driving force in the VoIP industry. Starting in 1997, some U.S. MSOs began to familiarize themselves with telephony deployment and marketing using legacy circuit-switched solutions. Although margins in this business have been low for some operators, voice remains a crucial element of their bundles and these MSOs are counting on VoIP to carry their telephony strategies forward.

2004 will see the start of major mass-market VoIP launches in the United States. By 2005, most of the major MSOs will begin mass-market deployments. By the end of the decade, traditional incumbent providers will begin migrating plain old telephone service (POTS) customers to their IP networks. Driven by these major deployments, the Yankee Group estimates 17.5 mln U.S. consumers will subscribe to a VoIP local phone service by 2008.

Why are customers switching to VOIP?

Infonetics Research conducted a survey of why the customers are choosing VOIP solutions over PBX ones. Surprisingly, cost was not a major factor for industrial deployment, which is rarely cheap. 72% of respondents pointed out to availability of new applications on VOIP platform. 59% liked the open standards that voice-over-IP telephone is based on, the same amount of respondents claimed scalability was the key. For 53% of survey participants the operating expenditures were reduced. Cost per port (50%), competition (44%), customer demand (34%), network consolidation (31%), customers rolling out their own VOIP networks (28%) and desire to utilize the latest in the network technology (25%) were also mentioned in the survey responses.

VOIP equipment sales grew 3% in Q2 2004

A newly published report from Dell’Oro Group, a source for market information about the networking and telecommunications industries, reveals that sales of next generation voice over Internet protocol (VoIP) equipment, including softswitches, media gateways, and hybrid media gateway softswitches, grew 3% worldwide in Q2 2004. Purchases of softswitch trunk licenses, which are indicative of deployments in the Service Provider network core, grew 4% in Q2 2004 over Q1 2004, while subscriber licenses declined 12% during thQ2 2004. YTY sales of softswitch trunk licenses grew almost 36%.

VOIP ports to grow at 15% CAGR

Infonetics predicts that VOIP ports will enjoy a compound annual growth rate (CAGR) of 15% over the next five years in the high-end enterprise router category, defined as modular platforms switching OC-3 (optical carrier level 3, equal to 155.52Mbps) to OC-12 (three OC-3) speeds. In the midrange category—handling bandwidth between T-3 and OC-3 speeds—it sees a 22%, five-year CAGR. Overall router ports, in contrast, are expected to grow by only 10% over that period.

1 mln US VOIP subscribers by year-end 2004

According to the Yankee Group VoIP will have close to 1 million subscribers by year-end 2004, and serve 17.5 million U.S. households by year-end 2008, growing from 131,000 at year-end 2003. Although Vonage dominates the market, cable MSOs will take the lead quickly. Cable MSOs will capture 56% of the U.S. local VoIP market by year-end 2005, while market share for the alternative voice provider category will decrease from 66% in 2003 to 19% in 2005. VoIP will drive cable telephony efforts and surpass circuit-switched cable telephony in 2006; by 2008, cable MSOs? share of the local telephony market will reach nearly 10%.

AT&T CEO doesnt’s see the money in VOIP

AT&T chief executive recently questioned the business model behin VOIP technologies. It’s hardly a secret that many consumers buy into the VOIP hype to erase, or substantially lower, the cost of long dostance. The size of the market, when you compare the dollars spent on traditional telephone services and the money spent on VOIP, is hardly of interest to a multi-billion dollar corporation. In the United States, about 600,000 subscribers use commercial VoIP services, in which calls travel over the Internet rather than traditional phone lines. By comparison, more than 172 million homes use traditional phone lines, which are heavily taxed and regulated, meaning that consumers pay more in fees than actual phone costs.

52% of those who have VoIP use it as a primary line

According to a recent study conducted by Ipsos-Insight for the AT&T Customer Insights Group, 74% of US consumers are aware of voice over Internet protocol (VoIP), but primarily when it is specifically referred to as “broadband phone service” or “Internet telephony.” Ipsos compares this level of recognition to just 19% of consumers who are aware of Wi-Fi and a strong 68% aware of DSL. Despite the widespread awareness of VoIP, only 6% actually use it at home. 52% of those people use VoIP as their primary phone line, 44% as secondary.

IP telephone prices decline 7%

In Q2 2003, the average selling price (ASP) of an IP Telephone fell 7% QTQ to $193. This drop can be largely attributed to the market leader, Cisco, who reduced some prices and introduced new low cost models. We are forecasting more modest ASP declines during the coming year (to $185 in Q2 2004) as most IP Telephones continue shipping on enterprise PBXs, where phone choices are limited by proprietary protocols. Further into the future, ASPs should decline more quickly as more IP Telephones ship for service provider VoIP offerings, where open-standard, lower cost phones will dominate.