Abstract
Market Overview
IP-based Next-generation Enterprise Voice (NGEV) Services to Capture nearly 87.9 percent of Total Enterprise Voice Market by 2011
Although enterprises in Asia Pacific have traditionally relied on TDM-based
Centrex services to meet their voice services needs, the Centrex market is
approaching saturation and the technology is expected to be largely replaced
by solutions that offer enhanced features. This is likely to result in a
technology shift from TDM Centrex to IP-based NGEV services and in keeping
with this trend, NGEV services are expected to see strong growth in the
region, with more operators looking to offer these services in order to
harness the move to IP telephony among enterprises. While in 2004, emerging
IP-based NGEV services (including IP Centrex and managed IP PBX) accounted for
only 10.7 percent of the total APAC enterprise voice market, IP-based services
are expected to account for more than 87.0 percent of the total market in 2011.
The adoption of IP telephony has revived the stagnant traditional enterprise
voice market and the entry of Internet service providers (ISPs) as well as
system integrators (SIs) has intensified the competition for traditional
carriers in the voice segment. These carriers are responding by establishing
converged next-generation networks (NGN) to transmit voice, video, and data on
a single network. "Rapidly changing technology, cost pressures, improved
productivity requirements, as well as a focus on their core business are
causing enterprises to view hosted IP solutions favorably," notes the analyst
of this research service. "The growth of NGEV services is being fuelled
largely by three major factors, including the growing demand for business
voice services due to declining prices, increasing teledensity and overall
expansion of the APAC economy, as well as migration of Centrex users and
adoption of hosted telephony by new customers, particularly small and medium
enterprises (SMEs)."
China Set to become the Leading NGEV Services Contributor
While Japan and Australia presently lead the way in next-generation telephony,
China is likely to emerge a major market in the coming years. The Chinese
Government is encouraging carriers to deploy NGN infrastructure as well as
accelerate the migration to IP Centrex and IP PBX from their existing TDM
Centrex. Although limited cross-country coverage represents a major barrier to
the growth of advanced telephony services, China's large size, coupled with
the popularity of VoIP services, is likely to favor the adoption of managed
NGEV services. Frost & Sullivan expects the Chinese NGEV services market to
grow to $384.7 million in 2011 from $11.7 million in 2005, contributing to up
to 33.9 percent of APAC NGEV services revenues in 2011.
The emerging competitive marketplace for NGEV services includes a number of
ISPs, SIs, solution providers, and platform vendors. "At this early stage of
market development, industry participants will need to work toward building
customer awareness, attracting early adopters, and securing a competitive
position in the market," says the analyst. "Further, strategic partnerships
could facilitate better market penetration and by offering turn-key solutions,
participants are more likely to convince customers to try their platforms and
services."
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