1. 2006 Market Map: Guide To VoIP
FirstPartner
FirstPartner www.firstpartner.net
Kurt Lyall Christopher Owen
t. +44 (0)870 874 8700
klyall@firstpartner.net cowen@firstpartner.net
Customer Segments
Welcome to VoIP Market Map
Welcome to the 2006 Q3 VoIP Market Map. It is an overview of the global VoIP
industry on one page and includes key facts and underlying trends that drive
Residential / Families Small Office Home Office (SoHo) Public Space / Campus Enterprise
this industry.
Needs: Needs: Needs: Needs:
1) Starting at the top, the map identifies four main customer segments and their
1) Out of the box and simple to use 1) Ease of administration 1) Simple to use 1) Interoperability with legacy systems
key needs.
2) It presents the complete range of phones and devices that customers can
2) Reliability and low cost 2) Cost efffective 2) Coverage and range 2) Security and reliability
choose from to adopt VoIP service.
3) Number portability 3) Network of users 3) Fast hand-off 3) Operating cost
3) The map identifies different channels through which customers buy phones
and VoIP services and solutions.
4) The map distinguishes between traditional service providers like fixed line
carriers and new Internet telecom service providers.
5) It lists leading players that offer infrastructure and technologies to both
service providers and enterprise customers.
Phones / Hardware
Market Facts
1. Subscribers to retail VoIP service worldwide rose by 83% from 10.3 million at the
beginning of 2005 to 18.7 million.
2. Number of subscribers paying for PC to phone service is over 4.7 million. Skype
has the largest market share at 45%.
3. Time Warner Cable in USA signed up 900,000 subscribers in 2005.
4. France is the largest VoIP market in Europe with 2.8 million subscribers.
5. The VoIP market for hardware and software is led by Cisco, which had 24.3 %
Soft Phone / IM Software USB Phone Vendors Smart Phones Hybrid Devices Wi - Fi Phones IP Phones ATA Other
share in the Q106. Avaya came in second with 23.4 %.
AOL Actiontec Dell AOL Portable IM Cisco Cisco Cisco VoIP Voice
US Pure-Play VOIP Market Share BT Voyager Atcom Eten Nintendo GameBoy Motorola Alcatel Digium BillKey
20%
CallComm Canyon Flipstart Nokia NGage NetGear Siemens D-Link Edgecore
Express Talk Clarisys HP Sony Mylo Sony Cidico Grandstream Logitech
1%
1%
Google Ipevo HTC Xbox Live! Symbol Mitel Linksys Motorola
2%
2%
Jabber Onyx iMate Hitachi Cable Toshiba SIPPhone Vegastream Netgear
2%
Lipz4 Philips UT Starcom Snom Zoom Polycom
Microsoft US Robotics Vocera Unidata Comms Systems Zyxel Sierra Wireless
55%
3%
4%
5%
5%
Vonage Verizon VoiceWing AT&T CallVantage SunRocket
Channel
Lingo NetZero Voice Broadvoice AOL
8x8 (Packet8) Earthlink Other
Mobile Operators Retailers Online / Mail Order IT VARS / Resellers Telecoms VARS / Resellers System Integrators
Source: Telephia
Market Drivers 3 (Hutchison) KPN Mobile Circuit City Radio Shack Amazon Firebox Brightstar Smith Micro Central Telecom ABP Accenture Atos Origin
VoIP Penetration into Broadband Market (US) CompUSA Micro Centre Dabs PC Telephone Brightpoint Tech Data Data Sharp Telecom Scantalk BT Consulting CommVerge
30.00%
Dixons CDW Kelkoo Play.com Dangaard Synnex Equant VoIPBitz CapGemini Satyam Computers
25.00%
Mesh Computers Walmart Firebox Shopping.com Data Sharp Telecom Global IT Networks L3N Vonexus Fujitsu Services Tata Consultancy
PC Mall Tesco VoIP Supply Talkip4u El Corte Ingles GTSI Netservices Lirex HP Services Orca Group
20.00%
PC World Carrefour VoIP Phone Depot TigerDirect Micro Computer Computacenter SouthernCom STS Logica CMG Quentris
15.00%
10.00%
5.00%
0.00%
2004 2005 2006 2007 2008
Service Providers
Source: The Yankee Group, 2004
Market Commentary
Internet Telecom Service Providers Internet Service Providers Wireless Internet Service Providers Alternatives Fixed Carriers
1. Service provider race
Low barriers to participation allow new entrants to launch services. Business models vary from
Skype CallServe BT Yahoo AvantGo BT OpenZone Azulstar 360 Networks Tech Terra British Telecom Comcast
provider to provider. Ultimately survivors must have strong funding, good marketing strategy and
willing to fight for market share as traditional carriers are also launching competing services. Vongage iConnect Easynet Covad Concourse Mobiboo Albacom TelCove Deutsche Telekom Hanara
Lingo InPhoneix Kingston ISP Net Canada Liberty Europe Clearwire CableVision Wave Crest France Telecom MCI
2. Infrastructure vendors have been over funded
SunRocket Telappliant Mistral FranceNet Swisscom Speednet Services Gamma Telecom Thus Telecom Italia Sprint
Multiple specialist vendors, funded by VCs, have launched platforms and infrastructure to support
Packet8 Earthlink Plusnet Road Runner T-Mobile Commspeed Inmarsat Viatel KPN Time Warner Cable
VoIP services. Ultimately too many suppliers are currently in the market and very few will be able
CallVantage PlusNet Nildram NetZero Wayport NextPhase Wireless iTXC Modus Telecom SingTel NTT
carve out a sustainable niche in the long-term. As technologies standardise, vendors will need to
consolidate technologies to deliver better value propositions to carriers and enterprises. Google Symphony Sky Virgin.net Fiberlink FreshTel KMC Telecom Inclarity Telefonica Verizon
Yahoo VoiceWing Tiscali Pipex iPass Avantel Primus Telecom NewEdge Telia Sonera VSNL
3. Mainstream networking vendors are the main beneficiaries
NetLogic Voiceglo Orange AOL GoRemote ERF Wireless Rapid Technology Alternative Telecom Telenor Qwest
Driven by the need for more bandwidth in order to deliver acceptable quality of service, mainstream
VoIP Street Go2Call Demon Datanet Boingo Net2Phone VoiceNet Cable & Wireless PCCW
network vendors are likely to benefit from VoIP helping to triggering customer up-grade and
replacement cycles. ISPs will also benefit as businesses and consumers look to increase their network
requirements.
4. VoIP over Wi-Fi is in hype mode
Unclear service delivery models, lack of hotspots and poor handset performance means that the
Wholesale Termination & Preselect IP to IP Interconnect Centrex & VPBX CPE
Platform
combination of these two technologies will take longer than expected to become a meaningful
service.
Example: Evolution of Skype Platform
5. VoIP over cellular networks Providers Providers
Providers Providers Providers
Solutions are being developed to enable customers to access buddy lists and make VoIM calls from
A viral network for
BT Wholesale Annecto Telecom Cable & Wireless Aastra Telecom C4L
their cellphone without incurring any long distance or per minute mobile charges in some cases. Tier
sharing
2 mobile operators are taking a lead through marketing arrangements with ITSPs to differentiate
Castle Networks Bactel Global Crossing Alcatel Belco
information and
their consumer propositions and boost data ARPU.
First European BandX InfinRoute Networks Avaya Digium
content
Global Source Cable & Wireless ITXC Nortel Speed Touch
FirstPartnergrowing strategic marketing and research agency. No other agency Largest peer to
Infocomm Global Crossing iBasis Polycom Nortel
peer system ever
FirstPartner is a fast
Level3 Global Termination Level3 Samsung Tandberg
built
has the strength of understanding of technology and its impact on changing customer
Primus ICX Europe Progress Telecom Siemens Toshiba
behaviour, combined with marketing know-how.
Teleglobe Verizon Qwest Sylantro Unisys
Presence on over
We take on big marketing challenges for our clients, helping them to, launch new
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Carrier Grade IP Infrastructure Enterprise IP Infrastructure
Why not contact us to get your team up to speed and to build on the debate. Technology and Platform Providers Skype Developer Ecosystem
Global IP Voice Processing Voxeo IVR
Unified Message Gateways
Soft Switches CRM
Disclaimer Voxeo IVR Pamela Systems Inbound PBX
Ubiquity Software Content Voxpilot Video response
The map includes information compiled from various reputable sources and other
Mindspeed Opensource Scodor Voicemail
methods like structured interviews and surveys, conference material and
Gateways Billing & Mediation IP PBXs/Centrex Firewalls
information available in the public domain. As data and information sources are Sylantra Platforms 4Teambiz PIM
outside our control, FirstPartner makes no representation as to its accuracy or Netwise PIM VApps Conferencing
completeness. All responsibility for any interpretation or actions based on this map
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ShoreTel Antispam & App. VideoIM
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lies solely with the reader. Copyright 2007
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