Home TODAY ON CRN:    Distributors revel in reseller cuts    Bot herder sentenced to three-year prison term    Juniper, Nortel invest in WLAN vendor    WAN space picks up the pace    Beethoven signs on Kiwi partner Simpl    Wavenet receives $1.2m funding injection    Google tests services suite for businesses    Microsoft delivers Vista 'pre-RC1' to testers    Sizing up the notebook battery debacle    NZ Telecom entertains Yellow Pages sell-off    Technology One’s revenue hits a high    Apple to replace recalled notebook batteries free    Data protection - who's got your back?    MSPs still optimising their models    Simms International acquires KH Distribution    Telstra unveils $50m facility    VMware appoints ITX as distributor    Resellers in a whirl over Synnex and Ingram cuts    IBM offers sales incentives to software resellers    Pioneer expands VIA distribution    Apple fires five for downloading Leopard OS
    + Blogs    + Webcasts    + Hot Products     + Jobs     + Events      + Subscribe   
RSS  |  Site Map  |  Newsletter
 SEARCH ARCHIVE     
 Wednesday 30 August 2006 
YOU ARE HERE >> HOME > Infrastructure > VoIP services to reach six million users

VoIP services to reach six million users

By Lilia Guan, CRN      22 March 2006 11:39 AEST      Infrastructure

VoIP services would attract six million SOHO and SME users in Australia by 2011, according to research conducted by Market Clarity.

The telecommunications researcher said there are currently 411,000 users of SME VoIP services as of December 2005, but fewer than 97,000 are subscribing to "paid services" in Australia.

The Market Clarity research found users would continue to favour free services, with paid VoIP offerings attracting only 2.8 million of the 6 million users by 2011.

Shara Evans, CEO of Market Clarity said low average revenue-per-user for VoIP users, indicate VoIP take-up is growing strongly in the consumer/SME space, providers are finding it difficult to convert subscribers into spenders.



She said: “As a result, by 2011 Internet-based VoIP services in Australia will grow to around $680 million out of a telecommunications market already worth more than $30 billion.”

Tony Warhurst, director of Zultys - an IP telephony equipment provider - agrees with the report's figures on the growth of VoIP services, but disputed Evan’s claims SMEs only want to use free VoIP services.

Warhurst said consumers are using free services like Skype and Firefly. However these consumers usually migrate to a similar functionality into their business after using these free services.

“You can’t run a business over a free Skype services. You can’t transfer calls internally and it doesn’t have the functionality SOHOs and SMEs need,” said Warhurst.

Evans also expects a “network effect” to inhibit revenue growth in the consumer and SME VoIP services industry.

“Much of the VoIP industry’s revenue depends on customers wanting to place calls to PSTN numbers,” Evans said.

“As the population of VoIP users grows, a growing proportion of their calls will stay on-network. VoIP providers will need to seek new sources of service revenue if the industry is to thrive.”

The report also found the prospects are better for the growing non-Internet Hosted IP Telephony market (also described as “hosted voice” or “IP centrex”).

Currently worth $59.49 million, by 2011 the hosted IP Telephony market will connect around 520,000 business handsets and generate revenue of more than $993 million annually.

“As PABX and SME key telephone systems ages, Hosted IP Telephony providers will have the opportunity to present next-generation IP-based solutions to customers,” Evans said.

The report by Market Clarity also shows this segment, which already claims more than 62 per cent of Hosted IPT service ends (handsets), will remain the largest base of hosted IP Telephony customers through 2011.

However, Warhurst felt IP centrex services are not as popular as the report claimed.

“I haven’t seen a huge uptake of IP centrex customers. This is basically when a customer of IP telephony signs up with a carrier and the core network backend is kept with the carrier, who provides users with handsets.

"Our SMB customers are connecting with Engin, because they want to be able to keep control of their core network,” said Warhurst.

He believes judging how the service is doing by the number of handsets misleads users.

“IP Centrex services cannot be evaluated on the number of handsets consumers and SMEs use. We actually have deployments where we supply 2800 handsets for one deployment.

"Essentially you could have three clients ordering up to 10,000 each. Handsets aren’t classed as sales points, that’s what IP Centrex service providers do just supply handsets to a customer then provide them with phone calls over an IP, the customer has no control over the network,” he said.




>> Submit this story to Digg


Reseller Rant
Reseller Rant
By Rabid Reseller
Digital divide
  Microsoft has come out in defence of workers’ rights. Well, make that workers’ r... more
Any excuse will do
  The latest security scare at airports is making it even harder to take anything ... more
Format wars
  The war between competing formats for the next generation of DVDs shows no sign ... more
RSS >

The reason I don't sell more security solutions is:





More Channel Jobs
+ Business Intelligence Practice Director
  Sydney or Melbourne
Geller & Associates
+ Cognos - Lead/Principal Consultant
  Sydney
Geller & Associates

More Channel Jobs...

More Channel Events
+ CeBIT Australia 2007
  Sydney Convention & Exhibitio Centre
1 May 2007 - 3 May 2007
+ Online Marketing - Optimising Your Brand Value and Business Growth
  L'Aqua, Sydney
24 October 2006 - 25 October 2006

More Channel Events...