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.*
* 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.
