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Telcos and CableCo Small Business Units Poised to Take a Revenue Hit, Predicts Insight Research Corp.

By :: Fri, 30 Mar 2012 04:58:49 -0400 EDT

MOUNTAIN LAKES, N.J., March 30, 2012 (SEND2PRESS NEWSWIRE) — Over 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.

Insight Research’s 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 broadband services has enabled a variety of upstart hosted service providers such as 8×8, Aptela, Fonality, and Nextiva to target the small business market.

These emerging companies are providing virtual PBX/VoIP services with enhanced features into the hotly contested lower end of the business segment-and they are doing it in ways that 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 forty million lines in the small business segment of the market now up for grabs, so we are not talking about chump change,” says Robert Rosenberg, Insight Research president. “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 billion 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 continue increasing at a faster rate,” Rosenberg concluded.

“VoIP and the SME: CableCos, Telcos, and the Rise of Hosted Service Models, 2011-2016″ segments adoption by 20 vertical industries and provides revenue estimates for each. Potential small business line losses are estimated for telcos AT&T, CenturyLink, Cincinnati Bell, Fairpoint, Frontier, TDS, Verizon, and Windstream as well as for MSOs Bright House, CableOne, Cablevision, Charter, Comcast, Cox, Mediacom, SuddenLink, Time Warner, and WOW Telecom.

An excerpt of this enterprise telecommunications services market research report, table of contents, and ordering information are online http://www.insight-corp.com/reports/voip12.asp .

This 123-page report is available immediately in Electronic (PDF) format and can be ordered online for $4,695 – or call 973-541-9600 for details. More information: http://www.insight-corp.com .

All trademarks acknowledged.

News Source: Insight Research Corporation :: This press release was issued on behalf of the news source by Send2Press® Newswire, a service of Neotrope®. View all current news at: http://Send2PressNewswire.com .

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Insight offers market research reports unmatched in depth and quality, and custom research services designed to meet our clients' unique needs. Our Subscription Program clients receive their choice of Insight reports and the most prompt, responsive analyst inquiry service in the industry. Since its founding in 1990, Insight has gained a reputation for objective, thoughtful market research. Telecommunications industry analysis is our sole focus; we are in the marketplace every day evaluating information and analyzing data, providing the most current, leading-edge market assessments. By continually expanding our agenda to serve the changing needs of our clients, we have earned a reputation for unparalleled customer support.

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