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

MOUNTAIN LAKES, N.J., March 30, 2012 /PRNewswire/ -- 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 8x8, 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 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 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 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.

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SOURCE Insight Research Corporation