According to Insight Research, independent hosted PBX providers should be able to take some small business market share from the Duopoly over the next five years.
The small business market size is more than 40 millions lines, says Robert Rosenberg, INSIGHT Research president. That will mean even more hosted PBX seats since lines and seats are not 1 for 1. "Our study suggests that thus far, small businesses haven't quite latched on to this new technology so the revenue today is only in the range of one-half billion dollars, but by 2015 hosted services will be nearly a $1.2 billion market and the adoption rate of the hosted services by small businesses will accelerate," Rosenberg concluded.
If the US Hosted PBX space is just $500M, I think that they have calculated wrong or at least not taken into account the hundreds of smaller providers with less than 5000 seats. Phone.com, Pingtel, Flat Planet Phone Co., FreedomVoice, PBX-Change and many, many more providers that you find at ITEXPO and elsewhere.
All the research I have seen states that Comcast is hands down the winner in the US Hosted PBX space with about 300K seats.
8x8 is now reaching $100M in revenue with ARPU of $244 on its 27,000 business customers.
Smoothstone is now West IP Communications after a $120M bid. Smoothstone is probably at $40M in revenue.
M5 Networks, recently acquired by ShoreTel, is doing $48M in revenue.
Telesphere, a member of the Broadsoft-based Cloud Communications Alliance, is doing about $30M.
Admittedly, most Hosted VoIP companies are doing less than $4M in sales, but if you add up hundreds of them at $4M or even $1M, you get to $500M fast. I already listed over $300M in revenue, so that $500M might be low. Still even if it was $1B in pales in comparison to US wireless revenue of $335B in 2012 or fixed network voice revenue that is about $132B or even the $38B in broadband access revenue. [carrier revolution from TIA study]