Analyst Says: Business VoIP Poised For Fast Growth

Business VoIP will be one of the top three growth areas in the telecommunications industry, according to a recently-released study by Boston-based research house Atlantic-ACM. (The other two will be machine-to-machine (M2M) communications, and fiber installation.)

It didn’t take Atlantic-ACM’s 300 page study, entitled “Data-Driven Developments: U.S. Telecom Wired and Wireless Sizing and Share 2012-2017,” to convince me of that. But as a long-standing observer of the VoIP market I’m always happy to see people who agree with my prognostications. Frankly, I haven’t read the study itself, but having been involved in such studies myself in the past I’m sure that many of those pages are there to help justify the $9,995 price tag for the study – a fairly typical fee for such work.

“According to our new sizing and share study, Machine-to-Machine (m2m), Business FTTx, and Business VoIP round out the top-three forecast growth products over the next five years,” said ATLANTIC-ACM senior analyst Douglas J. Barnett, as quoted by the research house in its press release. “We expect that strong growth in next-generation business services will help to offset declines from the large embedded base of legacy voice and internet services.”

I find it fascinating that Atlantic-ACM says “help to offset declines,” rather than “will offset declines.” In other words, it’s recognizing that the cost of business VoIP is significantly lower than the cost of traditional business telephony solutions. So although the volume of calls isn’t going to decline, total telecom industry revenue will, even as business VoIP revenue soars.

That’s bad new for traditional phone companies, but great news for the new generation of VoIP providers, such as Phone.com, and for their customers.