Over the last few years, voice over Internet Protocol (VoIP) communications has made significant gains to give the traditional phone lines a run for the money. As a result, the adoption of VoIP services in small and medium-sized businesses (SMBs) has grown all over the world. In fact, according to a study by MegaPath (News - Alert), the adoption of business VoIP services has seen steady growth over the past 10 years, and this trend will continue for the next few years.
Businesses, small or big, depend on effective internal and external communications. Hosted voice communications combines cost-effective technology with seamless integration of voice and data, ensuring that companies and clients stay connected. A study conducted by voice, data and security services provider MegaPath shows that landline companies are losing 700,000 customers per month. As a result, landline revenue of major telecom providers is falling. Landline revenue for AT&T (News - Alert), for instance, is down 16.5 percent since 2007. Likewise, Verizon has seen 19 percent decline in landline revenue since 2007.
Meanwhile, the adoption of VoIP services, which allows voice communications to be routed via the Internet or private secure network, is on the rise. According to MegaPath’s study, more than 30 percent of SMBs subscribe to some form of VoIP service. The adoption statistics show that in the U.S. alone in 2012, there were 30 million VoIP subscribers. Global VoIP revenues reached $65 billion in 2012, up from $58 billion in 2011.
The study shows that total VoIP market is projected to grow at 10 percent per year through 2016 with business seats doubling by that time. There are several factors driving this growth in the business sector. First, it is easy to use. While upgrading is simple and transparent, the services are easily scalable. Also, the need for internal resources for phone system management are minimal. Second, the cost savings are significant. Because VoIP employs existing infrastructure, monthly savings of up to 50 percent are realizable. Third, it offers flexibility and mobility. VoIP services can be used anywhere in the world. Study shows that by 2015, mobile VoIP usage will expand to 83 million lines.
The demand for affordable, feature-rich IP phone systems will continue to increase as businesses look to streamline communications, improve collaboration, and support mobility. MegaPath said that it meets these needs by providing cost-effective voice services that deliver collaboration and mobility features that traditional phone services cannot match.
Edited by Rachel Ramsey