Research Overview
IP Network Advancement Limits Demand for Traditional Voice Services within Wireline Voice Services Market
Internet Protocol (IP) enables the convergence of voice and data, integration of multiple channels, centralized reporting function, and allows telecom vendors to offer many other value-added features in a single package, thereby steering voice traffic away from switched networks to IP networks. Apart from lowering costs, the IP-based models are set to replace access and private lines with virtual private networks (VPNs), endangering the time division multiplexing (TDM)-based wireline voice services. The shift in demand from traditional, disparate TDM-based networks/services to IP services is likely to have a negative impact on the growth of traditional local voice services thereby affecting service providers' revenues, access lines, and profitability.
This Frost & Sullivan research service analyzes the North American enterprise TDM-based wireline voice services markets. The study provides insights into the drivers for this market along with challenges faced by the vendors and recommendations to overcome them. Detailed revenue analysis includes a breakdown by service type while market forecasts include both the U.S. and Canadian markets.
Declining Prices for TDM-based Domestic and International Voice Services to Promote their Usage
Service providers are offering flat rate long distance (LD) plans to businesses that provide either unlimited or large volumes of transaction for a fixed monthly charge. An increase in competition combined with bundling and alternative mediums (wireless and VoIP) have compelled TDM-based voice services providers to substantially reduce per minute rate for business LD carriers, which was always higher than residential rates.
"The average domestic LD rates in the United States have dropped from 15 cents a minute in 1992 when promotions and bundling were introduced to nearly 6 cents currently," says the analyst of this research service. "International LD rates have also been falling due to the deregulation of the global telecommunications sector, which is leading to a decline in terminating costs." Such drastically reduced prices are going a long way in promoting the usage of traditional wireline local and long distance voice services.
TDM-based Voice Services to Dominate the Enterprise Voice Service Markets in the Short-Term
Despite aggressive marketing from telecom carriers, the adoption rate of IP telephony among enterprises is limited. This market is dominated by traditional TDM-based voice services in terms of the number of customers, revenues, and traffic (minutes of use). However, this trend is not likely to continue in the long-term, as VoIP services, due to technological advancements that enhance service quality, are expected to make inroads into the business segments for local and long distance voice services. This could lead to a significant erosion of revenue for the TDM-based wireline voice services market.
"However, the overall rate of decline is expected to remain relatively low over the next 24 months due to limited VoIP adoption among small, medium, and large organizations," concludes the analyst.
Frost & Sullivan Growth Partnership Service
Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:
- Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firm's internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan's strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients' growth.
Benefits of this Service
Provides an Extensive Understanding of the Enterprise Voice Service Sector's Challenges and Drivers
Understanding of business challenges will help TDM-based voice providers to better position their products. In essence, effective understanding of business challenges is a key to offering customized solutions to enterprise customers.
Provides Breakdown of TDM-Based Voice by Various Service Types
The study provides extensive breakdowns of revenues and traffic for various TDM voice services. This information can help providers make informed decisions regarding marketing of traditional services.
Offers Market & Competitive Outlook for Various TDM Voice Services
The research highlights key market and competitive trends influencing the traditional voice services markets. The study also includes extensive discussion of regulatory changes that are re-shaping the competitive landscape within enterprise TDM-based voice services markets.
Detailed Industry Segmentation and Business Analysis is Also Valuable for the Investment Community and Consultants
The study provides detailed industry segmentation including local, long distance, toll-free, and audio-conferencing services markets.
End-User Analysis for Various Wireline Voice Services will Help Providers Understand Buyer Behavior
The analysis highlights various adoption and implementation trends for IP-based voice services within the enterprise markets. In addition, the toll-free section provides a breakdown of service usage by various business verticals such as retail, manufacturing, and financial segments.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- TDM-Based Voice Services
- Enterprise Local Voice Services
- Enterprise Long Distance Voice Services
- Toll free services
- Audio Conferencing Services
What's Included
- TDM-based voice services revenues and traffic forecasts (local, long distance, toll-free, and audio-conferencing)
- Market trends
- Competitive trends
- Domestic and international LD and toll-free revenue and traffic projections
| 
View Cart
