Effective Product Positioning to Help Hosted IP Telephony Solutions Outdo Premise-based Services
PALO ALTO, Calif.--(BUSINESS WIRE)--July 27, 2004--Greater functionalities provided by private branch exchanges (PBXs) drive business customers to choose premise-based solutions over traditional Centrex services. However, hosted IP telephony service providers are determined to reverse this trend by positioning their solutions as better alternatives to premise-based services.
Next-generation hosted services offer an increasing variety of features and capabilities that enable them to compete successfully against both traditional and next-generation hosted and premise-based solutions.
New analysis from Frost & Sullivan (www.telecom.frost.com), North American Hosted IP Telephony and VoIP Access Service Market, reveals that the market earned revenue totaling $120.7 million in 2003.
The biggest challenge for hosted IP telephony vendors and providers is to identify the features and capabilities that meet actual customer needs. Hosted IP telephony gives customers superior flexibility and control over their feature set/call settings and enhances their ability to inexpensively move, add, or change users.
"Furthermore, it helps customers to avoid large capital expenditure and investment in telephony capabilities as they grow or downsize their business, without having to commit to a certain capacity in advance," says Frost & Sullivan Research Analyst Elka Popova.
Effective marketing and sales strategies and detailed ROI and total cost of ownership studies are expected to enable service providers to position hosted IP telephony as a superior alternative to premise-based solutions.
The bundling of enhanced features such as unified messaging and VoIP virtual private networks (VPNs) with the basic telephony service could assist them in servicing an increasing number of business customers, especially small businesses and branch offices.
However, hosted IP telephony providers will have to develop products, features, or skills that strongly differentiate them from competitors. In future, IP's original advantage of cost savings is likely to take a backseat to the immense benefits of a diverse portfolio of VoIP and IP telephony services.
Service providers that introduce distinct hosted IP telephony services faster than competitors can rapidly expand their customer base and gain a larger market share among business telephony users.
"Most large service providers are expected to offer a range of business and residential services, on both wholesale and retail basis," notes Popova.
Although their product launches may differ, service providers are likely to constantly try to outdo each other in being the first-to-market in different areas.
For instance, MCI was one of the pioneers of hosted IP telephony services while AT&T was the first to offer managed Internet with VoIP, then VoIP virtual private networks (VPNs), and currently, residential broadband telephony.
Moreover, as long-distance carriers seek to gain shares in the local services segment, long-distance calling plans are projected to continue to evolve. This could be another notable competitive differentiator for service providers.
Market participants can leverage the flexibility offered by hosted IP telephony by packaging services and applications creatively and breaking away from rigid business models and service plans. This can help them improve customer satisfaction, and thereby, their own bottom lines.
If you are interested in an overview of the latest analysis of the North American Hosted IP Telephony and VoIP Access Service Market, please e-mail Dustin McVey at dmcvey@frost.com with the following information:
-- Hosted IP Telephony/VoIP Access A786
-- Name
-- Title
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-- E-mail
North American Hosted IP Telephony and VoIP Access Service Market, explores growth opportunities in the North American hosted IP telephony and VoIP access service market by customer size, type of service, and type of service provider. It projects the growth of hosted IP telephony and VoIP access services in view of the dynamic relationship with hosted and premise-based solutions on one hand, and next-generation solutions on the other. The study discusses three main types of business telephony services -- Centrex IP, IP Centrex, and VoIP access services. Interviews and executive summaries are available to the press.
Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.
North American Hosted IP Telephony and VoIP Access Service Market
A786
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