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Hosted IP telephony, VoIP access services markets on a roll: Frost & Sullivan

Businesses are increasingly adopting hosted services to avoid complexities associated with a premise-based solution...


November 29, 2006  


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Businesses are increasingly adopting hosted services to avoid complexities associated with a premise-based solution and for additional capabilities such as unified communication, simple-to-use conferencing and find me/follow me along with cost saving benefits associated with moves, adds and changes and toll bypass.

New analysis from Frost & Sullivan, North American Hosted IP Telephony and VoIP Access Services Market, reveals that the market earned revenues of US$372.6 million in 2005, and estimates this to reach US$14.6 billion in 2012.

“Small businesses that account for majority of the end users are likely to continue driving hosted IP telephony deployments,” says Lynda Starr, a Frost & Sullivan senior analyst.

“Medium and large businesses interests in hosted IP telephony and voice over Internet protocol (VoIP) access service are also likely to increase.”

According to the research firm, companies that adopt hosted IP telephony typically save 20-40% on what they would have paid for a premise-based private branch exchange (PBX): “When companies have positive experiences with hosted telephony and access services they spur adoption through word of mouth.”