Tuesday, November 29, 2005
Posted by Roberto
12:00 PM
0 comments
VOIP SYSTEM SALES SURGED 31 PERCENT
As of June, VoIP system sales grew 31 percent year-over-year, while sales of legacy voice systems fell by 20 percent during the same period, according to a research report issued by investment firm Merrill Lynch.
The two fastest-growing VoIP vendors: Cisco Systems and Avaya.
"Avaya and Cisco have consistently gained share in the enterprise telephony market, each with a slightly differing product strategy. Avaya offers a more manageable or slower migration path to IP that does not require the replacement of a company's existing legacy PBX voice system, while Cisco banks on "rip and replace" deals which involve a new IP infrastructure and with new IP telephones," the Merrill Lynch report explains.
As of June, market share for Cisco's pure-play VoIP products grew 15 percent quarter-over-quarter, while market share for Avaya's hybrid VoIP products climbed 14 percent during the same three-month period. VoIP vendors Alcatel, NEC, Nortel and Siemens are "treading water in the market as a result of share loss and lower revenue from legacy systems than is being offset by IP-related revenue," the report states.
It is interesting to notice that broadband providers can, potentially, adjust the priority and reduce the service quality of VoIP calls running on their networks. Also, Verso Technologies (VRSO) just began selling software that can allow broadband providers to prevent their networks' users from making calls via services such as Vonage or Skype. The legality of such filtering is still unclear.
According to research by Internet performance consultancy Keynote, on average, VoIP call quality is worse than cellular. Audio delay (the time between when you speak and the listener can hear you) is often unacceptably long, leading to overlapping conversations. So what's behind poor service quality? VoIP is spreading rapidly, with its user base more than doubling each year. "As these services grow, [the service providers] don't invest enough in their network components," says Jon Arnold, principal at J. Arnold & Associates, a telecom consultancy focusing on IP communications. "Their internal infrastructure isn't keeping up with the growth of subscribers."
A recent survey of seven VoIP providers found that Vonage offered the best call reliability, while AT&T's CallVantage service had the best audio clarity. Other services covered were Lingo, 8X8's (EGHT) Packet8, Verizon's VoiceWing, and Skype.
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