Abstract
European operators should embrace - not fight - VoIP
Vonage's announcement that it has teamed up with UK Wi-Fi service provider The
Cloud to offer free VoIP calls is the first major move in this direction,
which will force mobile operators to follow suit.
VoIP, transmitting voice conversations over a data network using Internet
Protocol, is slowly emerging as a viable technology option, seen by many as a
disruptive technology that will have a fundamental impact on the telecoms
landscape. But is VoIP an opportunity or a threat? This report will tell you.
VoIP is now challenging established technologies with the introduction of
products and services that meet the needs of modern business and technology
savvy consumers. Consequently, service providers in Europe are aggressively
looking for ways to offer VoIP to consumers. VoIP subscriber and revenue
forecasts are included in this report to help you identify the most promising
European markets.
In the enterprise and SMB markets, IP-based and hosted IP telephony services
are gaining in importance and are replacing TDM based products, ultimately
leading to a complete take over. On the vendor side, traditional PBX vendors
are being forced to develop products that are based on IP technology. This
report will tell you which individual European markets will see the highest
growth in PBX and hosting IP telephony lines and revenues until 2011.
In the consumer market, ISPs are beginning to challenge incumbent and Tier 2
fixed-line service providers by promoting VoIP as a secondary line that
includes added benefits such as free calling and cheap rate calls to numerous
destinations both inland and abroad.
VoWLAN and Wi-Fi communications products and services are also starting to
appear in the enterprise and consumer markets. This is forcing Tier 1 handset
vendors to develop new products to meet the demand created by the
implementation of the above technologies. Other companies such as ATStarcom,
D-Link, E28 and many more with a background in the IP sector are also
developing products and services including cellular handsets for VoWLAN and
Wi-Fi networks.
Fixed-line and mobile operators are equally affected by VoIP and face numerous
threats that are forcing them to re-evaluate their business plans. ISPs have
started offering inexpensive VoIP call services, which is eroding at the
revenue of traditional operators. This erosion is occurring simultaneously as
that experienced as a result of fixed-mobile substitution. This report
evaluates measures that can be adopted by operators to counter these threats
and exploit the potential opportunities on offer.
This report will provide you with answers to the following questions as they apply to your industry:
- Which European countries offer the greatest opportunity for VoIP service
adoption and hardware?
- What impact will VoIP have on telco and mobile business models?
- What strategies are open to these players?
- Can VoIP be profitable for telecoms service providers?
- What can be learned from European VoIP deployments?
- How will VoIP evolve and what will the future landscape look like?
- What is the regulatory and market outlook for naked DSL in Europe?
This 130-page report analyses the emergence of VoIP in the European
enterprise, business and consumer sectors. Detailed country by country
forecasts are provided and discussed in terms of geographical and
technological markets. The report also provides strategies and recommendations
that are applicable to fixed and mobile operators, handset vendors, hotspot
owners and ISPs.
This report argues that VoIP is going to become a major force affecting all
aspects of business and consumer telephony. It discusses measures that
companies need to implement in order to remain competitive.
Why you should buy this report:
Mobile and fixed-line operators:
Gain an understanding of the directions that the market is evolving and how it
relates to the needs of subscribers. Read about case studies in successful
market deployment of VoIP and the reasons behind them
Handset makers:
Gain an insight into the requirements of mobile operator and enterprise
customers as to the type of terminals they would want to deploy in the future.
See examples of devices being introduced to the market
ISPs:
Learn what services and business models are needed to challenge fixed-line and
mobile operators. Find out about convergence issues that will impact on your
business.
VoWLAN and Wi-Fi industry participants:
Find out what products and services are being developed and what fixed-line
and mobile operators are doing to counteract the threats posed by disruptive
technologies.
Investment companies:
Learn what are the requirements for a successful deployment of services, the
development of VoIP, VoWLAN and Wi-Fi services and products, and gain an
insight into investment opportunities and emerging companies in this space.
Table of Contents
Chapter 1: Executive Summary
- 1.1 Evolution of the VoIP market
- 1.2 Market opportunities
- 1.3 Major Market Trends
- 1.3.1 Significant Growth in Mobile Subscribers
- 1.3.2 Falling operator revenues
- 1.3.3 IP outsourcing grows in popularity
- 1.4 Future of the PBX market
- 1.5 Future of the hosted IP telephony market
- 1.6 Future of the Wi-Fi market
- 1.7 Future of the consumer VoIP market
- 1.8 Implications of VoIP + Wi-Fi/VoWLAN
- 1.9 Business models
- 1.10 Conclusions
Chapter 2: Introduction
- 2.1 Standard IP-based PBX
- 2.2 Hosted IP PBXs
- 2.3 Wi-Fi telephony
- 2.4 Consumer VoIP telephony
- 2.5 Mobile and VoIP
- 2.6 Methodology
- 2.6.1 Organisation of the Report
- 2.6.2 Aims and Focus of the Report
Chapter 3: VoIP market drivers
- 3.1 Legacy equipment is being eclipsed by IP-enabled replacement products
- 3.2 New entrants in the hosted IP telephony market are creating momentum
- 3.3 Segmentation of service offering is becoming more attractive to
customers
- 3.4 Established distribution channels facilitate access to potential
customers
- 3.5 Deregulation of the telecoms market drives VoIP deployment
- 3.6 Hosted IP telephony low entry costs make it accessible to a larger
market
- 3.7 IP Flexibility
- 3.7.1 IP-enabled architecture
- 3.7.2 Converged architecture
- 3.7.3 Client/server architecture
- 3.8 SIP
- 3.8.1 Opportunities for application developers
Chapter 4: VoIP market barriers and restraints
- 4.1 Companies prefer to deal with recognisable brands
- 4.2 Enterprises are slow to adapt to change
- 4.3 Vendor interoperability
- 4.4 Brand image is missing in the IP hosting environment
- 4.5 Distribution channel is lacking in the Wi-Fi market
- 4.6 QoS has to improve to attract mass convert to IP Telephony
- 4.7 Plug and play VoIP systems
Chapter 5: VoIP Business models
- 5.1 Available models
- 5.1.1 Calling cards
- Table 5.1: Calling cards rates by region, 2006
- 5.1.2 Company branch to branch calls
- 5.1.3 Long distance voice calls
- 5.1.4 Peer-to-Peer services
- 5.1.5 IP-to-PSTN services
- Table 5.2: IP-to-PSTN tariff, Q1 2006
- 5.1.6 Area code selected VoIP lines
Chapter 6: PBX market analysis and forecasts
- 6.1 Market overview
- 6.2 PBX choices
- Table 6.1: Key differences between hosted IP telephony and IP-based PBXs
- 6.3 PBX equipment costs
- Table 6.2: PBX cost comparison
- 6.4 Selection factors
- 6.5 PBX forecasts
- 6.5.1 Total EMEA market
- Table 6.3: EMEA PBX market line shipment and revenue, 2005-2011
- Table 6.4: PBX revenues by European markets (%), 2005-2011
- Table 6.5: IP vs TDM/PCM PBX shipments (%), 2005-2011
- Table 6.6: France PBX market shipments and revenues, 2005-2011
- Table 6.7: Germany PBX market shipments and revenues, 2005-2011
- Table 6.8: Italy PBX market shipments and revenues, 2005-2011
- Table 6.9: Spain PBX market shipments and revenues, 2005-2011
- Table 6.10: UK PBX market shipments and revenues, 2005-2011
- Table 6.11: Benelux PBX market shipments and revenues, 2005-2011
- Table 6.12: Scandinavia PBX market shipments and revenues, 2005-2011
- Table 6.13: Rest of Western Europe PBX market shipments and revenues,
2005-2011
- Table 6.14: Eastern Europe PBX market shipments and revenues,
2005-2011
- Table 6.15: Middle East and Africa PBX market shipments and revenues,
2005-2011
- 6.6 PBX competitive environment
- Table 6.16: PBX main industry participants by type
- 6.6.1 Avaya's approach to channels
- 6.6.1.1 Cisco's approach to channels
- 6.6.1.2 3COM's approach to channels
- 6.6.1.3 Avaya's marketing approach
- 6.6.2 Competitive factors
- 6.6.3 Price analysis
- 6.17: Typical costs for premise-based PBX systems
Chapter 7: Hosted IP-based telephony analysis and forecasts
- 7.1 Market overview
- 7.2 Technology providers
- Table 7.1: Hosted telephony providers
- 7.2.1 Benefits of hosted IP telephony services
- 7.2.1.2 Typical Bundles
- 7.2.1.3 Specific features
- 7.2.1.4 Costs
- 7.3 Price analysis
- 7.3.1 Falling service costs
- 7.4 Hosted IP telephony services
- 7.4.1 Total EMEA market
- Table 7.1 EMEA hosted IP telephony revenues by European markets,
2005-2011
- Table 7.2: EMEA total hosted IP telephony line shipments and
revenues, 2005-2011
- 7.4.2 Individual EMEA markets
- Table 7.3: France Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.4: Germany Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.5: Italy Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.6: Spain Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.7: UK Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.8: Benelux Hosted IP Telephony services line shipments and
revenues, 2006-2011
- Table 7.9: Scandinavia Hosted IP Telephony services line shipments
and revenues, 2006-2011
- Table 7.10: Rest of Western Europe Hosted IP Telephony services line
shipments and revenues, 2006-2011
- Table 7.11: Eastern Europe Hosted IP Telephony services line
shipments and revenues, 2006-2011
- Table 7.12: Middle East and Africa hosted IP telephony services line
shipments and revenues, 2006-2011
- 7.5 Competitive environment
- Table 7.13 Major European ISPs offering voice services
- 7.5.1 Hosted IP Telephony
- 7.5.1.1 Target market for hosted IP Telephony services
- 7.5.1.2 Competitive factors
- Table 7.14: Server vendor market share (%), 2005
- 7.5.1.2.1 Which service providers are at an advantage?
- 7.5.1.2.2. Market evolution
- 7.5.1.2.2.1 Increased competition followed by consolidation
- Table 7.15 Major European Service providers which offer hosted
telephony service
- 7.6 BT's approach to hosted telephony
- 7.6.1 Overview
- 7.6.2 21st Century Network
- 7.6.3 Flexible customers deployment
- 7.6.4 Flexible customer model
- 7.6.5 BT's convergence methodology
- 7.6.6 Hosted IP contact centre
- 7.6.7 BT's strategy
- 7.6.7.1 Service management performance
- 7.7 Case studies
- 7.7.1 Abbey Group
- 7.7.2 BT's own offices
- 7.8 BT's client list
Chapter 8 : Wi-Fi telephony market
- 8.1 Market overview
- 8.1.1 TeliaSonera enterprise solution
- 8.2 Wi-Fi
- 8.3 Wi-Fi phones
- 8.3.1 Wi-Fi certification moves
- 8.3.2 BroadVoice to sell SIP/GSM phones
- 8.4 Hotspots
- Table 8.1: Hotspots by region (%), 2005-2011
- 8.4.1 Growth in hotspots
- Table 8.2: Number of hotspots and users worldwide, 2005-2011
- 8.5 Rationalising Wi-Fi
- 8.6 Dual-mode handsets are on the rise
- Table 8.3: Global hybrid cellular/WLAN handset shipments, 2005-2011
- 8.7 Accessibility
- 8.8 Wi-Fi service providers
- 8.8.1 RabbitPoint handset
- 8.8.1.1 RabbitPoint's Market
- 5.8 Terrasip
- 8.9 Barabblu
- 5.10 Mazingo
- 8.11 Cost of commercial hotspots
- 8.12 Location of hotspots
- 8.13 Nokia
- 8.14 Evolution of the business model
- 8.14.1 Worst case scenario for existing service providers
- 8.15 VoWLAN
- 8.15.1 Overview
- 8.15.2 Advantages & disadvantages
- 5.15.3 Alternative to VoWLAN
- 8.15.4 VoWLAN users expectations
- 8.15.5 VoWLAN drivers
Chapter 9: Consumer VoIP market analysis and forecasts
- 9.1 Market Overview
- 9.2 Market data
- 9.2.1 Terminals and end-users evolution
- 9.2.1.1 Mobile phone end-users
- Table 9.1: Mobile subscribers, 2005-2011
- 9.2.1.2 EMEA Internet Penetration
- Table 9.2: EMEA internet penetration rate, 2005
- 9.2.1.3 EMEA broadband market
- Table 9.3: EMEA Top 10 broadband markets by penetration (%), 2004-2006
- 9.3 Mobile operators and VoIP
- 9.3.1 Segmentation opportunities
- 9.3.2 Skype functionality
- 9.3.2.1 Skype's business model
- 9.3.2.2 Security risks with Skype
- 9.3.2.3 Skype moves into mobile
- 9.3.2.4 Skype: A threat to mobile revenues?
- 9.3.2.4.1 Skype and 3
- Table 9.4: Skype datacard bundling pricing from 3, 2006
- 9.3.2.4.2 Eplus and Skype
- 9.3.2.4.3 The value of Skype to mobile
- Image 9.1: Nokia handset with SkypeOut
- Figure 9.1: EQO core technology
- 9.4 Mobile operators' response to VoIP
- 9.4.1 Mobile operators expand their services onto the Internet
- 9.4.1.1 A simple but effective response to VoIP exists
- 9.4.1.2 Mobile operators move into the fixed-line market
- 9.4.1.2.1 Orange
- 9.4.1.2.2 Vodafone
- 9.5 VoIP and fixed-line operators
- Table 9.5: VoIP tariffs by service provider, 2006
- 9.5.1 Vonage route to European expansion
- Table 9.6: Vonage virtual numbers markets
- 9.5.2 Naked DSL presents a real risk to fixed-line operators
- 9.5.2.1 NDSL in Western Europe
- Table 9.7: Naked DSL Western European provision and regulation by
country
- 6.6 VoIP revenue potential
- Table 9.8: Residential EMEA VoIP users and revenues, 2005-2011
- Table 9.9: EMEA demographics, 2005
- Table 9.10: Key consumer VoIP statistics, 2005
- 9.6.1 Skype and VoIP revenue
- 9.6.2 Skype extends partnership deals
- 9.6.3 Competitive environment
- 9.6.3.1 Jajah
- 9.6.3.2 Net2Phone
- 9.6.3.2.1 Net2Phone residential services
- 9.6.3.2.1.1 Net2Phone VoiceLine
- 9.6.3.2.1.2 Net2Phone CommCenter
- 9.6.3.2.3 Calling Cards
Chapter 10 : Strategies for success
- 10.1 Overview
- 10.2 Strategies based on marketing approach
- 10.2.1 PBX and hosted IP telephony vendors
- 10.2.2 Wi-Fi
- 10.2.3 Consumer VoIP
- 10.3 Fixed-line operator strategies
- Table 10.1: Fixed-line strategies to defend against VoIP
- 10.3.1 Strategy based on outsourcing
- 10.3.1.1 Flexing their Financial might
- 10.3.1.2 Re-merging
- 10.4 Strategy for mobile-only operators
- 10.4.1 Partnerships
- 10.4.2 Import technology from the US
- 10.5 Strategy for ISPs
- 10.6 Strategies based on strategic alliances
- 10.6.1 VoIP service providers and vendors
- 10.6.1.1 Alliances
- 10.6.1.2 Adding value
- 10.7 Strategies based on Pricing
- 10.7.1 Voice and data service providers
Chapter 11: Recommendations
- 11.1 Marketing Department
- 11.1.1 Vendor recommendations
- 11.1.2 Operator recommendations
- 11.2 Sales department
- 11.2.1 Operator recommendations
- 11.3 Product development department
- 11.4 Market-specific recommendations
- 11.4.1 Service provider recommendations
- 11.4.2 Vendor recommendations
- 11.4.2.1 Time-to-market
- 11.4.2.2 Strengthened product portfolio
- 11.4.2.3 Attention to design
Appendix A : Lead author's profile
Appendix B : About visiongain
Appendix C : Report evaluation form
- 3 UK
- 3COM
- 3GPP
- Abbey Group
- Accenture
- Accton
- Agere
- Alba
- Alcatel
- AOL
- Apple
- Ares
- Asterisk
- Asus
- AT&T
- Avaya
- Barabblu
- BCN
- Belgacom
- BenQ
- Boingo Wireless
- BridgePort
- Broadcom
- BroadVoice
- BT
- BT Global Services
- BT WholeSale
- Bunt
- Cable & Wireless
- Cellip
- Cirpack
- Cisco
- Club-Internet
- Colt
- Communitel
- Comneon
- Creative
- CTIA
- Deutsche Telekom
- Dimension Data
- D-Link
- Dopod
- DrayTEL
- E Plus
- eBay
- Eqo
- Equant
- E-TEN
- ETHICT
- ETSI
- Extreme Networks
- FastWeb
- Fon
- France Telecom
- Global IP Sound
- Goingsoft
- Google
- Hitachi
- HP
- iBasis
- IBM
- IDT
- IETF
- Iliad
- IMTC
- Intel
- IPCC
- IPWireless
- Jajah
- JASJAR
- Kineto Wireless
- Level 3
- Logitech
- M3-Concept
- Marvel Technology
- Mazingo,
- Microsoft
- Mitel
- MobileIGNITE Alliance
- Motorola
- NEC
- Net2Phone
- Node4Solutions
- Nokia
- Nordnet
- Nortel
- NTL
- NTT Europe
- O2
- Ofcom
- Orange
- OutSmart
- PBX-Network
- Pirelli Broadband Solutions
- Polycam
- Proxim
- Qpass
- Qtek
- Qualcomm
- Quantum Technology
- R&B IPCS
- RabbitPoint
- RIM
- Salesforce.com
- Samsung
- SBC
- SFR
- Shoretel
- Siemens
- SIP Foundry
- Sipgate
- SIPquest
- Sipsys
- Six Apart
- SkyFone
- Skype
- Sonorit
- Sonus
- Sprectralink
- Telecom Italia
- Telefonica
- Telefonica Deutschland
- Telefonica Moviles
- TeliaSonera
- Telindus
- Telio
- TerraSip
- TerraSip
- Texas Instruments
- TIM
- Tiscali
- T-Mobile
- T-Online
- T-Systems
- TTPCom
- Unisys
- UTStarcom
- Viatel
- Virgin Mobile
- Vodafone
- VoluBill
- Vonage
- Wanadoo
- Wi-Fi Alliance
- Wi-LAN
- Yahoo
- ZyTEL
