Study: VoIP on the Rise--But TDM Still Rules

Convergence is taking off but companies are still using conventional phones too.

April 21, 2007

2 Min Read
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An increasing number of U.S. companies have signed up for voice over IP (VoIP), but many businesses still rely on more conventional telephony solutions.


As you're putting together your business plans, you might want to keep in mind this research from In-Stat. The company found that even though 20 percent of U.S. companies are using VoIP, 44 percent of their voice lines are still TDM. VoIP migration is steady--the industry's building traffic numbers abundantly show that--but customers are moving carefully until the technology has proved itself and the old TDM equipment depreciates out. And there's still plenty of experimentation going on: Of the companies using VoIP, 36 percent are using multiple types of VoIP communication. In four years, In-Stat expects, about two-thirds of businesses will be using some form of VoIP. In other words, there's still plenty of headroom in the VoIP business.
Sean Ginevan
NWC Contributing Editor

In a new report, market research firm In-Stat revealed that while 20 percent of all U.S. companies use VoIP today, 44 percent of organizations using IP telephony still have at least some conventional TDM, circuit-switched phone lines.That said, In-Stat is forecasting continued IP telephony growth in the coming years. By 2011, 33 percent of all companies are expected to use VoIP in some capacity, In-Stat said. Thirty-six percent of the companies that have deployed IP telephony are actually using products from multiple vendors.

The market research firm said smaller businesses are most drawn to broadband IP telephony products while IP PBXs appeal to large companies. About 14 percent of companies are using some form of voice-enabled IM.

In-Stat said it expects hosted IP telephony revenue to surpass that of broadband IP telephony (BBIPT) by 2010.


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Although not the first VoIP trunking technology available to small and midsize companies, SIP trunking may be the first to have a widespread impact on phone communications for these enterprises.

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