Small-Office Expenditures on Broadband Telephony to Climb

Demand for broadband IP telephony service will continue to climb in the small business market, according to at least one research firm.

In-Stat forecasts that small-office expenditures on broadband IP telephony will rise by 83 percent from 2010 to 2015. The research firm defines a small office as supporting one to four employees.

Broadband IP telephone offers a number of advantages for small businesses and SOHO,” including low monthly service fee(s) and negligible costs for long distance,” said Greg Potter, In-Stat research analyst.

But the analyst noted there are some disadvantages to the VoIP service as well.

Unfortunately, it does not provide the scalability associated with hosted and IP PBX solutions,” Potter said. It also does not typically come with the service level agreements (SLAs) and quality-of-service (QoS) afforded by other solutions, which are general requirements for enterprise and medium sized businesses.”

In research, “US Business Spending by Size of Business and Vertical, 2010-2015: Business IP/VoIP Communication Services,” In-Stat also finds that the traditional TDM market is set to decline to just under $14.5 billion in 2015 while application-based VoIP will increase more than 50 percent from 2010-2015.

The firm also forecasts that spending among mid-sized businesses will represent the greatest growth during the years tracked above.  

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