Page 35 - PCCA Journal 2nd Quarter 2012

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PCCA Journal|2
nd
Quarter 2012
35
cooperation with the National Telecom-
munications Cooperative Association
and its members, seeks to sustain and
enhance the quality of life throughout
rural America by advancing an under-
standing of rural telecommunications
issues.
Insight Research
Predicts Revenue Hit
for Telcos and CableCos
O
ver the next five years, all of
the major U.S. telcos and cable
TV MSOs are expected to lose
small business customers to a new crop
of hosted service providers that will
offer PBX-like voice services at lower
reoccurring costs and with minimal site
equipment expense, according to a new
market research study from the Insight
Research Corporation.
The market analysis study, “VoIP and
the SME: CableCos, Telcos, and the Rise
of Hosted Service Models, 2011-2016,”
points out that the advent of VoIP PBX
business telephone technology and the
nearly universal availability of broad-
band services have enabled a variety of
upstart hosted service providers such
as 8x8, Aptela, Fonality, and Nextiva
to target the small business market.
These emerging companies are providing
virtual PBX/VoIP services with en-
hanced features into the hotly contested
lower end of the business segment, and
they are doing it in ways that are more
competitive in terms of functionality,
productivity, and pricing than the service
bundles being provided by either the
telcos or the MSOs.
“There are more than 40 million lines
in the small business segment of the
market now up for grabs, so we are
not talking about chump change,” said
Insight Research President Robert Rosen-
berg,. “Our study suggests that thus far,
small businesses haven’t quite latched
on to this new technology so the revenue
today is only in the range of one-half bil-
lion dollars, but by 2015 hosted services
will be nearly a $1.2 billion market and
the adoption rate of the hosted services
by small businesses will accelerate.”
An excerpt of this enterprise
telecommunications services market
research report, table of contents, and
ordering information are available at
www.insight-corp.com.
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News Briefs continued on page 36