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NGEV to grab 87.9% of APAC market

Posted: 08 Dec 2006     Print Version  Bookmark and Share

Keywords:Frost & Sullivan  VoIP  IP  NGEV  ISPs 

By 2011, emerging IP-based next-generation enterprise voice (NGEV) services, which includes IP Centrex and managed IP PBX, will capture nearly 88 per cent of the total voice market in Asia Pacific, up from 2004's 10.7 per cent market segment share, said a Frost & Sullivan report. China will be the key driver for this growth.

Frost & Sullivan predicts a strong technology shift from TDM Centrex to IP-based NGEV services in the region as findings pointed that the Centrex market is approaching saturation and will likely be replaced by solutions offering enhanced features. The research firm added that more operators are planning to offer NGEV services to cope up with the trend and to harness the move to IP telephony among enterprises.

The adoption of IP telephony has revived the stagnant traditional enterprise voice market. Moreover, the entry of ISPs and system integrators has intensified the competition for traditional voice carriers. These carriers are responding by establishing converged next-generation networks (NGN) to transmit voice, video and data on a single network. Rapidly changing technology, cost pressures, improved productivity requirements and a focus on their core business are causing enterprises to favour hosted IP solutions, noted Frost&Sullivan.

Growth driver
China's NGEV services is forecasted to grow from Rs.53.26 crore ($11.7 million) in 2005 to Rs.1,761.62 crore ($384.7 million) in 2011, contributing up to 33.9 per cent to Asia Pacific's NGEV services revenues in 2011. Hence, China is singled-out to emerge as major NGEV market in the coming years, inching away from today's next-generation telephony segment leaders, Japan and Australia.

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