VoIP Industry Newsletter: Topics in Disaster Recovery Planning for VoIP networks

Jul 2009

Research: VoIP market: Q1 09
The Dell’Oro Group’s Carrier IP Telephony Quarterly Report offers in-depth coverage of the market with tables covering telecom equipment manufacturers’ (TEMs’) revenue, average selling prices, and license/channel shipments for telephony equipment which includes softswitches, media gateways, session border controllers and voice application servers. Below are data relevant to the VoIP marketplace.

In 1Q09 the carrier IP telephony equipment and software market contracted 26% Q/Q and 27% Y/Y to $697 M. This is accounted for in part by the global economic compression.

The VoIP services market had previously shown strong growth through 2007, driven mostly by increases in Voice-over-Broadband (VoBB) subscribers. In 2008, the growth rate in the market for VoBB began to slow, as broadband subscriber base began to plateau.

Although the overall market for carrier IP telephony equipment and software has been growing more slowly than expected, there are some bright spots: Business Voice-over-IP (VoIP) services, in particular

1. SIP Trunking and IP Centrex applications, are gradually becoming a larger piece of the softswitch and Voice Application Server (VAS) markets. SIP Trunking in particular has continued to sell well according to Dell’Oro Group VP Greg Collins, emphasizing that they have continued to see resilience in the market for equipment associated with SIP Trunking and hosted PBX (IP Centrex) solutions.
2. Migration from legacy to next generation Class 5 switching among Tier 2 and 3 Service Providers in the United States has helped to boost softswitch sales.
3. The enterprise Session Border Controller (SBC) market is seeing a good deal of consolidation and investment as SIP Trunking, combined with the need for businesses to integrate IP PBX systems from disparate vendors with a diversity of SIP interoperation challenges creates market opportunity.

For more information and/or full report, please contact Greg@delloro.com
Dell’Oro Group, Inc.

Google grabs 1 million phone numbers for Google Voice
Google last month reserved 1 million phone numbers with Level 3, signaling that it may finally be ready to roll out its long-anticipated Google Voice service. The free service, announced in March, lets users unify their phone numbers, allowing them to have a single number through Google Voice that rings a call through to all their phones.

Alcatel-Lucent research: “The Recession’s Effects on Network Services: An overview of consumer spending priorities worldwide”
Alcatel-Lucent Market Advantage recently conducted worldwide end-user research on the current economic downturn and its effect on consumer spending on network-based communications services, defined as Internet, television, data and voice services. The report notes that consumers are reluctant to eliminate any of these services, particularly broadband Internet. The report offers valuable data on future economic scenarios of consumer spending:

If the global economy does not improve, 35% of consumers plan to reduce spending on network-based services. These cutbacks will increase dramatically if the downturn gets worse, averaging 71% worldwide.

When the economy improves, 29% of consumers plan to increase their spending on network-based services, while 13% still plan to make cuts.

Consumers are adapting to financial constraints by looking for more cost-effective ways to retain the services they value most. Their options include:

• Shifting away from fee-based services to free alternatives, such as free video and VoIP services
• Relying more heavily on emailing and text messaging, rather than wireless voice communications
• Opting for prepaid voice plans rather than post-paid plans
• Choosing bundled service packages that offer substantial discounts
• Accepting advertising-subsidized services — an option that’s received most favorably in emerging countries like China and India.

For full report: Alcatel-Lucent

Mobile VoIP to Generate Revenues of over US $8 Billion in Latin America by 2014
A report from Signals Telecom Consulting indicates that Brazil will continue to lead the VoIP market in Latin America, and will account for over 38% of total revenue for the region by 2014, driven by the adoption of wireless technologies, revenue from which will pass the US$1 billion mark in 2012. Mexico should reach this mark by 2013, while the Argentine market will do so in 2014….
www.signalstelecom.com

Mobile VoIP Poses a Challenge for Traditional Mobile Voice Providers
Mobile portal voice over Internet Protocol (VoIP) offered by third-party application-based providers poses a huge and direct challenge to the US$692.6 billion global mobile voice market, according to Gartner. The research firm predicts that over time traditional network-based mobile carriers face the real prospect of losing a major slice of their voice traffic and revenue to new non-infrastructure players that use VoIP.
--cellular-news

Cisco: Q1 Carrier VoIP Contraction Despite some downturn in the overall VoIP marketplace, a recent Cisco report offers bright spots. The report states that even though there are problems in the carrier VoIP market, there are some very strong sectors within IP telephony that are robust, in particular, Business VoIP Services and SIP Trunking.

While VoIP penetration has been growing at a slower pace this year, the slowdown appears to be coming from the residential side. More and more businesses are turning to the cost-saving technology for voice communications.

Infinities Research’s biannual VoIP and UC Services and Subscribers report, for example, finds that, despite the global recession, businesses continue to switch from traditional telephone service to IP Telephony because of the cost savings and productivity enhancing features it brings. The report defines VoIP services to include hosted VoIP (or IP Centrex), hosted UC (unified communications), integrated IP access, managed IP-PBXs, residential VoIP, SIP Trunking and other types of IP voice access, including voice VPNs.

70% of UK Organisations Hit By One or More Data Breach Incidents Within Last Twelve Months
LONDON, 2009 /PRNewswire via COMTEX/ -- PGP Corporation, a global leader in enterprise data protection, has announced the results of the third annual study by The Ponemon Institute, identifying the steps UK organisations are taking in order to safeguard their confidential data. The 2009 Annual Study: UK. Enterprise Encryption Trends study, which polled IT security professionals at 615 enterprises and public sector organisations, found that 70% of UK organisations have been hit by at least one data breach incident [data loss or network infiltration] within the last year, up from 60% in the previous year. The number of firms experiencing multiple breaches was also up, with 12% of respondents admitting to more than five data loss incidents in the twelve-month period (up from 3%). Less than half of these breaches (43%) were publicly announced; there was no legal or regulatory requirement to disclose the remaining 57% of incidents….
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