New Study: VoIP to Reach 6 Million by 2011, Free Services to Dominate
Sydney, AUSTRALIA — Wednesday, 22 March 2006 — In new research published today, Market Clarity has forecast that Australian Consumer/SME Internet-based VoIP services will attract six million users by 2011. However, the report finds that users will continue to favour free services, with paid VoIP offerings attracting only 2.8 million of the 6 million users by 2011. The results of the study are to be presented by Market Clarity CEO Shara Evans in an address to the CommsDay Summit this afternoon.
The Australian VoIP Services Market is part of Market Clarity’s ongoing series of demographics and forecasts publications, a portfolio of reports which already includes fixed voice services, and mobile voice and data services. In the latest publication, Market Clarity analyses the growth of VoIP services since 2004, and provides forecasts to 2011.
“We estimate there to be around 411,000 users of Internet-based Consumer/SME VoIP services as of December 2005, but fewer than 97,000 are subscribing to paid services,” said Shara Evans, CEO of Market Clarity. “Furthermore, the industry data we have studied shows a low average revenue per user [ARPU] for VoIP users, indicating that while VoIP take-up is growing strongly in the Consumer/SME space, providers are finding it difficult to convert subscribers into spenders.”
Evans continued: “As a result, by 2011 Internet-based VoIP services in Australia will grow to around $680 million out of a telecommunications market already worth more than $30 billion .”
Evans also expects a “network effect” to inhibit revenue growth in the Internet-based Consumer/SME VoIP services industry. “Much of the VoIP industry’s revenue depends on customers wanting to place calls to PSTN numbers,” Evans explained. “As the population of VoIP users grows, a growing proportion of their calls will stay on-network. VoIP providers will need to seek new sources of service revenue if the industry is to thrive.”
The prospects are far better for the growing non-Internet Hosted IP Telephony market (also described as “Hosted Voice” or “IP Centrex”), Market Clarity finds. Currently worth $59.49 million, by 2011 the hosted IP Telephony market will connect close to 520,000 business handsets and generate revenue of more than $993 million annually.
“As today’s fleet of PABX and SME key telephone systems ages, Hosted IP Telephony providers will have the opportunity to present next-generation IP-based solutions to customers,” Evans said. “Hosted IP Telephony solutions will become increasingly attractive in that environment, because they eliminate the capex required to implement a new telephone system.”
“Additionally, they allow large enterprises to deliver the same features to all of their users, even those in small or remote branch offices, and SMEs have the opportunity to obtain large system features at an affordable, fixed monthly per-handset price,” Evans said.
Because of its attractiveness to the SME customer, Market Clarity believes this segment, which already claims more than 62% of Hosted IPT service ends (handsets), will remain the largest base of hosted IP Telephony customers through 2011.
About The Australian VoIP Services Market
The Australian VoIP Services Market was released today and is now available from Market Clarity. This publication comes in the form of a presentation and/or spreadsheet-style report providing up-to-date service take-up and forecasting information on Australia’s VoIP market. This publication covers a host of VoIP market segments, giving insight into the development of the market since 2004 and annual growth forecasts to 2011. The report provides historical data from 2004, and forecasts through 2011 for Internet-based Consumer/SME VoIP services and Non-Internet Business Hosted IP Telephony Services.
About Market Clarity
Market Clarity is an award-winning telecommunications analyst firm founded in January 2006 by leading Australian telecommunications researcher and strategic consultant, Shara Evans. The firm covers all aspects of telecommunications, including traditional and converged services and technologies. Market Clarity’s extensive databases of technical and market information cover a wide range of facts and figures on the technologies and services that are shaping the Australian telecommunications market. Market Clarity’s GIS tools and research databases enable the correlation and presentation of highly complex information in an intuitive geographic (map) format.
Market Clarity’s insights are derived from a deep understanding of technology, coupled with comprehensive research, which examines each segment of a service’s value chain as well as underlying population demographics. By leveraging its engineering knowledge with an ongoing primary research program, Market Clarity provides insight, intelligence and advice on all aspects of the Australian telecommunications market including traditional, converged and future technologies. Market Clarity’s unparalleled market knowledge and research databases are brought to all consulting engagements.
Market Clarity’s contribution to telecommunications in Australia was recognised by the telecommunications industry’s peak body, the Communications Alliance, which awarded the company its 2007 ACOMMS award for Services to the Industry – Professional Services.
Market Clarity is headquartered in Sydney, Australia.