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  • MZA: Avaya Continues to Lead PBX Market

    The latest figures released by analyst firm MZA have shown that the Corded PBX market (excluding Micro PBX products) increased by 16% in Q2 2010 compared to Q2 2009 at a global level.

    According to MZA, these results show mixed fortunes depending on the sales region and point towards a turbulent road to recovery with fragile growth rates.

    The report finds that Western Europe, for example, which represented more than one-quarter of the overall global market, showed only weak levels of growth as volumes here increased by a meagre one percent in comparison to Q1 2010.

    One of the major contributing factors to this was the result for the UK market, ordinarily the second largest in the region, which declined in Q2 2010 by 5% compared to Q1 2010. However, in a reversal of fortunes, Germany demonstrated growth of 8% in Q2 2010 compared to Q1 2010 after it previously had dropped by 12% sequentially. According to analysts, both of these results illustrate the extremely volatile nature of the recovery in Western Europe.

    North America, on the other hand, posted an encouraging set of results this quarter, both in comparison to the same quarter of last year (up by 18%) and sequentially (up by 13%), although this still leaves the market adrift of its 2008 average quarterly run-rate of over three million extensions.

    Research by MZA shows that one of the biggest increases globally was recorded in Eastern Europe, where volumes have started to pick up following some of the toughest trading conditions. In Q2 2010, the market increased by 35% compared to Q2 2009. Much of the increase was driven here by Russia, where volumes are normalising but still have a long way to go.

    The second largest growth rate was registered in Asia Pacific (excluding Japan), where an increase of 19% in Q2 2010 was recorded over Q2 2009.

    Avaya continued to lead the world PBX market, growing market share from 13% in Q1 2010 to 15% in Q2 2010. Its leadership position was first attained as a result of the acquisition of Nortel.

    Cisco was in second position with a stable 12% market share while Panasonic moved from fourth position in the last quarter to third position in this, maintaining its 11% share. Panasonic continued to lead in the Below 100 Extensions sector with a steady 16% market share, ahead of NEC in second position and Avaya in third position. In the Above 100 Extensions market, Cisco was the market leader with a 24% market share, followed by Avaya.

    World IP Extensions Market

    The raport also finds that the IP extensions market grew by 27% compared to Q2 2009, which was greater than the 16% rise seen in the total extensions market. The Below 100 IP Extensions market grew by 33%, while the Above 100 IP Extensions market increased by 25%.

    In both instances, increases in the IP extensions market far outweighed the growth seen in the total market and also the growth in the Below 100 Extensions market continued to outpace the growth seen in the Above 100 Extensions market as the adoption of IP to the desktop becomes more widespread.

    Cisco maintained its leadership of the IP extensions market with a 33% market share, followed by Avaya at 21% and NEC with 10% market share.

  • Report: The Future of Consumer VoIP

    According to the recent report "The Future of Consumer VoIP" by Research and Markets, it is important to distinguish between a profitable business that successfully sells VoIP services and a profitable VoIP business.

    “Successful VoIP businesses are driven by other services the company offers, and by services that align with customers’ perceived needs not by the VoIP business alone," as the research firm claims.

    In the early 2000s, telecom industry experts widely expected VoIP to change the dynamics of the voice communications business. But a decade later, the largest providers of consumer Internet voice services are, with one exception, conventional telecommunications companies. Some are pioneers and innovators, some are not. “What they do share, however, is a market strategy that doesn’t rely solely on price,” the analysts say.

    According to the report, the most profitable over-the-top VoIP providers are those that quickly leveraged their success into building their own networks. Successful VoIP providers offer multiple communications services, as well as services aligned with the key needs of targeted markets.

    The research shows that telecoms have more natural advantages in the VoIP business than incumbency. They understand consumer expectations, and the migration to all-IP networks allows them to leverage network consolidation.

    Analysts note that the pressure is on VoIP service providers to make VoIP mobile. Driven by growing mobile handset capabilities and broadband subscriptions, and continued high prices for international calls, the market for mobile VoIP is developing quickly. “The mobile handset is coming into its own as a platform for converged communications,” the research firm states.

    According to the report, the rapidly growing number of mobile smartphones creates opportunities to integrate voice interaction into a wide range of applications, as well as creating opportunities for other types of intelligent, converged appliances reinventing the home phone, for example. Amazon’s Kindle e-book shows the opportunity for mobile communications-equipped "appliances" at mass-market prices.

    Analysts also finds that consumers increasingly want services customized to their needs, preferences and priorities giving VARs, software companies, and internet companies, as well as voice service providers, opportunities increase their value to specific markets and customers.

    The report concludes that consumer VoIP is most successful in the most regulated (non-Communist) markets. “Emerging markets present big risks, but offer big VoIP opportunities because many people in these countries are bypassing conventional telephone service for mobile and VoIP,” according to Research and Markets.

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  • ”Big Seven” Smartphone Applications to Drive Future Hardware Designs

    Smartphone manufacturers need to accommodate seven core smartphone applications, the “Big Seven”, in their next generation handset designs, according to In-Stat.

    These big seven applications include email, games, social networking, instant messaging, mapping & directions, music & radio, and weather.

    Combined, the big seven will account for 7 billion downloads worldwide in 2014, says the research group.

    “In-Stat tracks 26 different categories of smartphone applications,” said Frank Dickson, VP of Research. “A designer can optimize a handset for any one of those application categories. However, it’s the big seven applications that phone designers need to accommodate in each and every device.”

    Recent research by In-Stat found that the three applications that have the highest compound annual growth rates through 2014 are micro blogging, mobile banking and VoIP.

    The report also says that the number of Android apps downloaded is growing at the fastest rate; however, Apple applications still dominate both free and paid downloads.

    “The tsunami of mobile applications has created a hyper-competitive market putting significant pressure on prices and margins,” said Dickson.

    According to In-Stat, productivity applications such as mapping, business and enterprise applications and phone tools & utilities generate 59% of all smartphone application revenue.

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  • comScore: Motorola and RIM Lead U.S. Smartphone Market

    comScore, a firm that measures the digital world, released data from the comScore MobiLens service, reporting key trends in the U.S. mobile phone industry during the three month period between October 2009 and January 2010.

    The report found Motorola to be the top handset manufacturer overall with 22.9 percent market share, while RIM led among smartphone platforms with 43.0 percent market share.

    OEM Market Share

    In the 3 month average ending in January, 234 million Americans were mobile subscribers ages 13 and older, with device manufacturer Motorola ranking as the top OEM with 22.9 percent of U.S. mobile subscribers.

    LG ranked second with 21.7 percent share, followed by Samsung (21.1 percent share), Nokia (9.1 percent share) and RIM (7.8 percent share).

    Smartphone Platform Market Share

    According to the report, 42.7 million people in the U.S. owned smartphones in an average month during the November to January period, up 18 percent from the August through October period.

    RIM was the leading mobile smartphone platform in the U.S. with 43.0 percent share of U.S. smartphone subscribers, rising 1.7 percentage points versus three months earlier.

    Apple ranked second with 25.1 percent share (up 0.3 percentage points), followed by Microsoft at 15.7 percent, Google at 7.1 percent (up 4.3 percentage points), and Palm at 5.7 percent. Google’s Android platform continues to see rapid gains in market share.

    Mobile Content Usage

    In an average month during the measured period, 63.5 percent of U.S. mobile subscribers used text messaging on their mobile device, up 1.5 percentage points versus three months prior.

    Browsers were used by 28.6 percent of U.S. mobile subscribers (up 1.8 percentage points), while subscribers who played games made up 21.7 percent (up 0.4 percentage points).

    Access of social networking sites or blogs experienced strong gains in the past three months, growing 3.3 percentage points to 17.1 percent of mobile subscribers, as the report shows.

  • Carrier VoIP Continues to Transform Mobile/Fixed Networks

    Synergy Research Group released their newest report „Carrier VoIP Q4 2009 and YE 2009 market shares” that shows that the worldwide market for Carrier VoIP totaled just over $10 billion for the full year 2009.

    Year over year, the market fell 18 percent; significantly less than drops measured in other Telecom and IT equipment markets.

    The biggest drivers for Carrier VoIP traditionally have been migrating aging TDM PSTN switches to VoIP platforms. In the last 24 months further growth has been added with Mobile Operators pursuing the Capex and OpEx advantages of IP as did the Wireline networks before it.

    According to Synergy, mobile deployments for Carrier VoIP have made a serious impact on market sizes and market players for the VoIP Media

    “Gateway market. Over the last 2 years the changes have been dramatic and change continues with GENBAND’s impending acquisition of Nortel’s CVAS group. The move by GENBAND will garner a market share position twice that of their nearest competitor,” say analysts.

    Synergy believes that IMS will have a strong impact on the Carrier VoIP market over the coming years. In 2009, it was clear that IMS made its mark as a highly viable and transformational service delivery platform for both fixed line and mobile carriers. One such marquee IMS example is AT&T’s U-Verse network where they have added over 1 Million IMS VoIP subscribers in the last 12 months.

    "Although IMS has been around for a number of years, it clearly showed its potential in 2009," said Jeremy Duke, Principal Analyst and Founder, Synergy Research Group.

    "Synergy believes 2010 will show more IMS market development with increased deployments and continued industry cooperation such as that seen with the One Voice Initiative."

    Another growing area being tracked by Synergy includes the GGSN/SGSN and PDN equipment markets. Synergy says that with Smart Phone usage increasing, a tidal wave of data and video traffic is building that will force mobile operators to make large investments to contend with the change in traffic.

    “We anticipate seeing more vendor activity here as vendors jockey to position themselves to take advantage of this network investment — as seen with Cisco acquiring Starent in late 2009,” says Synergy.

  • In-Stat: 4G LTE Gated by 3G Success, not WiMAX

    LTE, the next-generation mobile broadband standard, is the clear choice for the next leap in wireless technology, reports In-Stat. The analysts claim that while WiMax appeared to be a competitor for 4G early on, that battle is now largely resolved.

    In-Stat predicts that LTE’s deployment will primarily be impeded by the success of 3G networks and HSPA and HSPA+ networks as mobile operators seek to leverage their installed infrastructure.

    LTE still has several glaring issues. These include lack of spectrum, signal-to-noise ratio, and non-established patent and royalty pool. “It’s clear that the shift toward 4G LTE will be gradual and protracted,” says In-Stat.

    While LTE will ultimately become the 4G standard of choice, Mobile Wi-Max is much more mature in deployment and has a distinct niche. According to the research group, even by 2013, Mobile Wi-Max will have more than 5 times as many global subscribers as LTE.

    LTE deployments will effectively begin in 2010. North America and Asia/Pacific will be the first regions to deploy.

    In-Stat also believes that external clients, such as dongles, network cards, and USB dongles will be the first LTE subscriber devices sold. LTE mobile handsets will not start shipping in major volumes until 2H12.

    “WiMAX deployments have given chipset manufacturers, device manufacturers, and infrastructure suppliers real-world experience,” state the analysts.

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  • VoIP Penetration Forecast to Reach 79% of US Businesses by 2013

    VoIP penetration among US businesses will increase rapidly over the next few years, reaching 79% by 2013, compared to 42% at the end of 2009, reports In-Stat. This penetration reflects companies having a VoIP solution deployed in at least one location.

    “VoIP adopters have a good understanding of the cost savings associated with VoIP, and have oriented their limited budgets to optimizing efficiency and savings by replacing legacy TDM voice solutions,” says David Lemelin, In-Stat analyst.

    “With businesses opening up fewer new locations than we have seen in recent years, much of this current investment is occurring at headquarters locations where efficiencies and savings can be maximized.”

    The research shows that hosted IP Centrex has now surpassed Broadband IP Telephony as the leading revenue-generating, carrier-based business VoIP solution.

    33% of businesses that have already deployed VoIP solutions report that recent economic conditions have caused them to slow additional deployment plans, compared to 30% reporting no change in plans.

    According to the report, broadband IP Telephony revenues continue to grow and will more than double by 2013, compared to 2008. This growth will be fueled by single-user applications among increasingly distributed and mobile workforces.

    In-Stat states that growth in the business IP market has tremendous potential to disrupt the traditional telephone industry on multiple levels.

    “Service providers, equipment manufacturers and systems integrators are increasingly offering different types of business VoIP solutions. IT managers and C-level executives recognize the cost savings and flexibility that VoIP solutions can bring to their businesses, but issues remain before comprehensive adoption takes place, such as security, integration and end-user transparency,” says the research group.

    Analysts also say business adoption of IP communications will also be influenced by how companies integrate other communications functionalities, such as wireless connectivity via Wi-Fi and WiMAX, IM, and video applications.

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  • Mobile Phone Shipments Rebound To Double-Digit Growth in Q4 2009

    The worldwide mobile phone market grew 11.3% in the fourth quarter of 2009, ending five consecutive quarters of retrenchment. According to IDC‘s Worldwide Mobile Phone Tracker, vendors shipped 325.3 million units in 4Q09 compared to 292.4 million units in the fourth quarter of 2008.

    Vendors shipped a total of 1.13 billion units on a cumulative worldwide basis in 2009, down 5.2% from the 1.19 billion units shipped in 2008.

    "The mobile phone market has rebounded in dramatic fashion," said Kevin Restivo, senior research analyst with IDC’s Mobile Phone Tracker.

    "The Asia/Pacific region and the United States were primarily responsible for pushing the market back into growth territory. Overall, vendors offered a wide array of converged mobile devices and messaging devices in the seasonally strong fourth quarter, to take advantage of increased user demand."

    According to Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team, consumer tastes for mobile phones have increasingly shifted from simple voice telephony to greater data usage, and both handset vendors and carriers have been eager to meet demand despite ongoing economic challenges.

    IDC anticipates that the worldwide mobile phone market will rebound in 2010. "Economic recovery mixed with pent-up demand will create positive conditions for handset vendors in both developed and emerging markets in 2010,” said Llamas.

    The research shows that in Asia/Pacific (excluding Japan), 2009 as a whole was relatively flat year on year, marked by a stronger preference for low-cost handsets in China and India as users substituted away from more expensive options under recessionary pressure.

    However, the Asia/Pacific market saw strong gains in 4Q09, reflecting a strong start to recovery.

    Touchscreen-enabled devices remained a hot segment of the market, helping to drive the demand for converged mobile devices across the region.

    The Western European handset market grew on both a year-over-year and sequential basis in 4Q09.

    LG Electronics and Samsung performed particularly well thanks to their collective strength in the traditional mobile phones segment while Apple, Nokia, and Research In Motion helped sustain growth in the converged mobile device market.

    On a full-year basis, however, shipments into the region still declined as the improved second-half performance was not enough to offset the declines in the first half.

    In CEMA vendors found pockets of improvement during 4Q09, but overall sales in the region were focused on entry-level handsets targeted at first-time users.

    According to IDC, the North American market finished 2009 relatively strong posting the second-highest regional growth after the Asia/Pacific region. Converged mobile devices remained in high demand in the fourth quarter due to a combination of lower priced devices and rate plans as well as greater user and carrier interest.

    However, feature phones accounted for the majority of shipments last year despite an overall volume decrease on a year-over-year basis. In Canada, mobile phone shipment volumes were buoyed by the introduction of a new wireless network, which increased the demand for smartphones, particularly the Apple iPhone.

    Related articles
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  • 3G and Wireless Data Boom in China

    The release of 3G licenses in China is spurring a wireless data boom, with national revenue from such services rising by 18.9 percent in 2009 and nearly doubling from 2008 to 2013, says iSuppli.

    According to the research group, as the one-year anniversary of the issuance of 3G licenses in China approaches, wireless data revenue, including both messaging and non-messaging service, is set to rise to $19.3 billion in 2009, up from $16.3 billion in 2008.

    By 2013, data revenue will surge to $31.5 billion, increasing at a Compound Annual Growth Rate (CAGR) of 14.1 percent from $16.3 billion in 2008.

    iSuppli predicts that non-messaging revenue soon will exceed messaging revenue as carriers expand mainstream adoption of 3G services. Non messaging service revenue will reach $20 billion in 2013, up by a factor of three from $6.8 billion in 2008.

    “The rapid growth of China’s data services is being enabled by the monumental spending of the nation’s wireless carriers on mobile infrastructure equipment,” said Will Kong, an analyst covering China research at iSuppli.

    “The carriers this year will spend about $6.3 billion on mobile infrastructure equipment, up 28 percent from 2008. This will represent a near-term peak, with spending in 2010 declining by 2.4 percent to $6.1 billion. During the next five years, carrier spending will continue to decline but will remain at a high level of more than $5.5 billion annually.”

    Kong claims that, although China Mobile achieved strong financial performance this year, its subscriber growth rate will decline. This is because China Telecom and China Unicom will place greater competitive pressure on China Mobile, especially in non-messaging services, by leveraging their network and handset advantages.

    In fact, China Mobile already has lost substantial market share in terms of new subscribers. The company’s share of wireless subscribers dropped to 58.2 percent in September, down from 78 percent in January.

    iSuppli forecasts mobile subscribers at China Telecom and China Unicom will exceed 100 million and 200 million, respectively, in 2013. By leveraging their advantages in networks and handset products, China Telecom and China Unicom will place even more pressure on China Mobile.

    iSuppli expects that China Mobile’s incremental market share will be stable at around 60 percent for the next few years.

    China Telecom and China Unicom will continue to subsidize mobile phones in order to provide attractive consumer prices.

    And both carriers will be supported by their parent companies, keeping them solvent. iSuppli also believes China Telecom and China Unicom will focus on long-term returns to gain more market share rather than on short-term profits.

  • IDC: 450 Million Mobile Internet Users Worldwide in 2009, One Billion by 2013

    There were more than 450 million mobile Internet users worldwide in 2009, a number that is expected to more than double by the end of 2013, according to IDC.

    IDC’s Worldwide Digital Marketplace Model and Forecast finds that most popular online activities of mobile Internet users are similar to those of other Internet users: using search engines, reading news and sports information, downloading music and videos, and sending/receiving email and instant messages.

    Over the next four years, IDC expects some of the fastest growing applications for mobile Internet users will be making online purchases, participating in online communities, and creating blogs.

    Accessing online business applications and corporate email systems will also grow rapidly as businesses move to empower their mobile workforce.

    Highlights from IDC research include the following:

    • More than 1.6 billion devices worldwide were used to access the Internet in 2009, including PCs, mobile phones, and online videogame consoles.

    • China continues to have more Internet users than any other country, with 359 million in 2009. This number is expected to grow to 566 million by 2013. The United States had 261 million Internet users in 2009, a figure that will reach 280 million in 2013. India will have one of the fastest growing Internet populations, growing almost two-fold between 2009 and 2013.

    • Presently, the United States has far more total devices connected to the Internet than any other country. China, however, is the leader in in the number of mobile online devices with almost 85 million mobile devices connected to the Internet in 2009.

    • Worldwide, more than 624 million Internet users will make online purchases in 2009, totaling nearly $8 trillion (both business to business and business to consumer). By 2013, worldwide eCommerce transactions will be worth more than $16 trillion.

    • Worldwide spending on Internet advertising will total nearly $61 billion in 2009, which is slightly more than 10% of all ad spending across all media. This share is expected to reach almost 15%% by 2013 as Internet ad spending grows surpasses $100 billion worldwide.

    "With a wealth of information and services available from almost anywhere, Internet-connected mobile devices are reshaping the way we go about our personal and professional lives. With an explosion in applications for mobile devices underway, the next several years will witness another sea change in the way users interact with the Internet and further blur the lines between personal and professional," said John Gantz, chief research officer at IDC.