Small Office Spend on Broadband IP Telephony to Increase 83% from 2010-2015, Says In-Stat

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Broadband IP telephony is used to transport voice calls over an IP network, and, if need be, to connect to the PSTN. This looks like traditional telephone service to the end-user and, in the case of cable VoIP service, is often marketed as a “digital” voice service, leaving many users unaware that they are using a VoIP service. This has been a popular form of VoIP in both the work-at-home and small business arenas, and that trend will continue according to new In-Stat research, which forecasts that the small office (1 to 4 employees) spend on broadband IP telephony will increase by 83% from 2010-2015.

Broadband IP telephony offers a number of advantages for small businesses and SOHO… Unfortunately it does not provide the scalability associated with hosted and IP PBX solutions.

Broadband IP telephony is used to transport voice calls over an IP network, and, if need be, to connect to the PSTN. This looks like traditional telephone service to the end-user and, in the case of cable VoIP service, is often marketed as a “digital” voice service, leaving many users unaware that they are using a VoIP service. This has been a popular form of VoIP in both the work-at-home and small business arenas, and that trend will continue according to new In-Stat research, which forecasts that the small office (1 to 4 employees) spend on broadband IP telephony will increase by 83% from 2010-2015.

“Broadband IP telephony offers a number of advantages for small businesses and SOHO; primary among them is the low monthly service fee and negligible costs for long distance,” says Greg Potter, Research Analyst. “Unfortunately it does not provide the scalability associated with hosted and IP PBX solutions. It also does not typically come with the service level agreements (SLAs) and quality-of-service (QoS) afforded by other solutions, which are general requirements for enterprise and medium sized businesses.”

Additional data includes:

  •     Traditional TDM is set to decline to just under $14.5 billion in 2015.
  •     Application-Based VoIP, will increase over 50% from 2010-2015.
  •     As a segment, mid-sized business (100 to 999 employees) spending will have the greatest growth, increasing in excess of 10% between 2010-2015.
  •     The professional services vertical market segment will spend over $3 Billion in 2013.

The In-Stat research, US Business Spending by Size of Business and Vertical, 2010–2015: Business IP/VoIP Communication Services (#1105026ISFS) provides comprehensive analysis and forecasts of the market for business IP communications, including unified communications, VoIP, and Fixed Mobile Convergence.

Forecasts are broken into the following size-of-business segments and sub-segments:

  •     Home office (1 to 4 employees)
  •     Small office (1 to 4 employees)
  •     Small business (5 to 9 employees, 10 to 19 employees, and 20 to 99 employees)
  •     Mid-sized business (100 to 499 employees and 500 to 999 employees)
  •     Enterprise (1,000 to 4,999 employees, 5,000 to 9,999 employees, and 10,000 or more employees)

Forecasts are also broken down further into the following vertical markets:

  •     Administrative and support services, waste management
  •     Arts and entertainment
  •     Construction
  •     Education
  •     Finance and insurance
  •     Forestry, fishing, and agricultural services
  •     Government
  •     Healthcare and social services
  •     Hospitality and food
  •     Information and communication
  •     Management of companies and enterprises
  •     Manufacturing
  •     Mining
  •     Other services
  •     Professional services
  •     Real estate
  •     Retail trade
  •     Transportation
  •     Utilities
  •     Wholesale trade

This research is part of In-Stat’s Business IP/VoIP Spending Forecasts and Segmentation service provides comprehensive analysis and forecasts of the market for business IP communications, including unified communications, VoIP and Fixed Mobile Convergence.

About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

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Greg Potter, Research Analyst
In-Stat
(480) 483-4444
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Rick Vogelei, Marketing Manager
In-Stat
(480) 483-4476
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