Enterprise VoIP Revenues to Grow to $1.86B by Yearend

Enterprise VoIP revenues hit approximately $1.34 billion in 2008, are projected to rise to $1.86 billion at the end of this year, according to new research published in June 2009 by Pike & Fischer.

Over the past 12 months the market for enterprise-class VoIP has grown at a 29 percent compound annual growth rate — somewhat slower than the research firm forecast last year, but still robust. Pike & Fischer analysts forecast the growth rate to climb to 32 percent through 2013.

Revenue will grow slightly slower than the number of lines due to price erosion, the research firm noted. “The VoIP service revenue includes the amount for toll charges where not included in the base package. These toll charges are likely to be under price competition, as well,” the firm noted.

The large enterprise segment represents a big portion of the growth. Multiple factors drive the decision for a company to migrate from analog phones or TDM to VoIP. The top three reasons continue to be cost savings, the need to upgrade obsolete equipment, and the promise of increased employee productivity through new features.

“AT&T, Qwest and Verizon are likely to retain respectable shares in this space,” the research firm stated. “They all have a compelling portfolio of VoIP services and good relationships with these customers.”

However, the size of the market has attracted a number of new entrants that for the most part are doing a better job in selling to the small and medium business (SMB) segment. This is where AT&T, Qwest, and Verizon are likely to lose share, the research firm stated.