SHARE



ABOUT THE AUTHOR


Melanie Turek
Melanie Turek is Vice President, Research at Frost & Sullivan. She is a renowned expert in unified communications, collaboration, social...
Read Full Bio >>
SHARE



Melanie Turek | May 27, 2010 |

 
   

Frost & Sullivan Releases Market Data for SIP Trunking and Voice Access Technologies

Frost & Sullivan Releases Market Data for SIP Trunking and Voice Access Technologies The North American VoIP access and SIP trunking services market reached $717.3 million in 2009, growing at 22.3 percent year over year.

The North American VoIP access and SIP trunking services market reached $717.3 million in 2009, growing at 22.3 percent year over year.

My colleague Subha Rama recently released Frost & Sullivan's latest research on the North American VoIP Access and SIP Trunking Services Market. Given how popular the topic of SIP trunking is today, I thought I'd share some of the highlights here.* The North American VoIP access and SIP trunking services market reached $717.3 million in 2009, growing at 22.3 percent year over year.

* Between 2009 and 2016, the market is expected to register a compound annual growth rate (CAGR) of 27.3 percent to reach $3.9 billion.

* In 2009, the user base expanded at a rate of 40.1 percent and reached 3.8 million users. Over the forecast period, the installed base is expected to experience a CAGR of 42.8 percent to reach 46 million users in 2016.

* Over the last few years, there has been a definite shift from circuit-switched telephony to IP-based voice services. On-premises deployments, too, are making the transition from TDM PBXs to IP-based systems, as businesses look to realize benefits including lower costs, flexibility, ease of integration, greater productivity, consolidated network management, self-service mechanisms, and robust features.

* Subject to bandwidth availability, a SIP trunk can carry unlimited voice calls (though service providers are known to restrict the number of simultaneous calls to anywhere between 28 and 41 per SIP trunk), versus a traditional PSTN/PRI trunk that can accommodate only 24 calls per channel (realistically, 17.5 calls).

* Although businesses of all sizes can benefit from the access-line and toll savings offered by VoIP services, SMBs have emerged as an attractive niche for VoIP access services. SMBs either deploy IP trunking as an overlay service to their existing broadband access (wireline/wireless, DSL, cable, T1/E1, Ethernet, etc.) or buy pure SIP/H.323 trunks, leveraging the IP trunking provider's network and IP delivery architecture.

* Larger enterprises want to consolidate trunks and voice platforms, centralize management and administration, and reduce costs by leveraging self-service options instead of relying on third-party technical support.

* The VoIP access and SIP trunking market continues to evolve, driven by time-to-market pressures and a constant need for delivering best-in-class services at lower costs. The market is seeing intense competition from competitive local exchange carriers (CLECs), virtual network operators, and resellers of complex, globally deployed networks. Incumbent PSTN providers are increasingly fighting to protect their customer base against the onslaught of SIP trunking providers.

* Few vendors offer soft switches and application servers that can support VoIP access/SIP trunking and hosted IP telephony services. Due to the slow uptake in these nascent services markets, the vendor market experienced premature consolidation, limiting service provider choices in terms of technologies and suppliers.

The study contains more detailed information on market driver, challenges and restraints, market share data, pricing trends and best practices and recommendations. Clients can access it at www.frost.com.The North American VoIP access and SIP trunking services market reached $717.3 million in 2009, growing at 22.3 percent year over year.





COMMENTS



August 16, 2017

Contact centers have long been at the leading edge of innovation in communications technology, given their promise of measurable ROI and the continual need to optimize customer interactions and sta

July 12, 2017

Enterprises have been migrating Unified Communications & Collaboration applications to datacenters - private clouds - for the past few years. With this move comes the opportunity to leverage da

May 31, 2017

In the days of old, people in suits used to meet at a boardroom table to update each other on their work. Including a remote colleague meant setting a conference phone on the table for in-person pa

August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular BlogGeek.me blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.