Soaring like an Eagle
IP communications continues to grow at a very fast pace. According to the latest report “Local Telephone Competition: Status as of June 30, 2010” by the Industry Analysis and Technology Division Wireline Competition of the FCC, VoIP has soared in penetration with a 21% growth from December 2008 to June 2010. Of course, this growth comes at the expense of TDM circuits. TDM or switched access lines continued to decline showing a 13% loss over the same period. The major benefactor in the growth of VoIP was the cable industry. Looking at the number only for businesses, only 0.5% of VoIP lines was provided by ILECS versus 5.5% provided by non-ILECs, like Broadvox and Cypress Communications.
Another interesting fact within the study is the level of penetration for all businesses. To my surprise only 5% of business lines are VoIP. This would indicate that we are just crossing the chasm for VoIP/SIP Trunking acceptance in the business community. This also means we should not see a reduction in the growth of VoIP/SIP Trunking sales for some time to come.
Finally, the major benefactors of the VoIP/SIP Trunking adoption by businesses should be the ITSPs and CLECs. I believe two factors are the cause for this trend. Businesses trust the non-ILECs IP infrastructures to provide the level of reliability and voice quality to support their commercial activity, and the ILECs continue to promote the TDM facilities over IP Trunks. It is unclear as to when the ILECs will decide to compete with us at their full potential. For now, all indications are this is the time for us to rapidly grow, become stronger and prepare for the eventual onslaught. It is great that we can do all of that as we provide an incredible service at a cheaper cost while positioning our customers for the future of Unified Communications.
It is the IP community’s time to soar.