SME Drives Hosted VoIP Market

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Cavell have released their latest Hosted VoIP report that focuses on the trends and developments in the last six months of 2014 and also includes a 5-year forecast for seat numbers and revenues.

Written by Dominic Black he states “Cavell have seen the market fulfill the strong growth that was forecast in our midyear report with the SME segment, where average employee size is between 10-50 seats, driving growth. As of 31st December 2014, there were 1,649,219 Hosted VoIP seats in the UK, growing by 245,489 seats (17.49%). The large enterprise segment (1000+ seats) has also seen stronger growth than in previous years as some large bids that had been won earlier in the year were finally in deployment phase.

The market is still very fragmented with over 80 providers serving the UK market although what is interesting now is that many are speaking to Cavell about looking to expand overseas. We have also seen US giants Thinkingphones and Vonage setting up operations in the UK, who join other large international providers such as 8×8, RingCentral and Nfon who have entered in the last few years.

What has been interesting in this report is the impact of fibre, which has not had the predicted effect on driving growth in the midmarket. Although BT is on target to reach their fibre rollout figure, the fibre is still not in the right areas, which is making it difficult for providers and channel partners alike to offer it as a service, especially as the availability and price ranges differ so significantly depending on location.”