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A recent report from research firm Frost & Sullivan (News - Alert), " North American VoIP Access and SIP Trunking Services Markets," finds that the voice over Internet protocol access and session initiation protocol trunking services market, "will continue to build on its 40.1 percent growth in user base and 22.3 percent growth in revenues in 2009."

Frost & Sullivan analysts found that enterprises are looking for alternatives to their legacy time division multiplexing-based communication infrastructure.

"Intense market competition and the resulting price pressures, at least at the lower end of the market, are likely to keep the subscriber base growing at a faster rate than revenues, translating to lower margins for the providers," the researchers found.

Last month, TMC's (News - Alert) Mimi Swamy reported that Frost & Sullivan awarded the 2010 Customer Value Enhancement Award to PAETEC (News - Alert) Holding for its Voice over IP Access and Session Initiated Protocol Trunking Services.

According to the report, Swamy wrote, businesses can merge the feature-rich and tremendous efficiencies of and IP-based network with voice calling to deliver a new generation of business-class solutions, when they use Voice over IP using SIP.

Frost and Sullivan used the "CEO 360 Degree Perspective," which formed the foundation of the TEAM Research methodology to determine the recipient of the award.

The market earned revenues of $717.3 million in 2009 and estimates this to reach $3.9 billion in 2016.

"The majority of the installed customer premise equipment is still TDM private branch exchange and therefore, a large percentage of the installed services base requires the deployment of media gateways for protocol conversion, while only a small percentage is direct/native SIP trunks connecting to SIP-enabled IP telephony platforms," explains Frost & Sullivan program director, Elka Popova.