Voice over IP (VoIP) is the most potentially disruptive telephony technology
since the birth of the industry, changing every aspect of making and
delivering phone calls. Many traditional telecom carriers today transport all
of their long-distance voice traffic over IP connections. Some companies
deliver phone calls over the Internet for free. Others offer residential or
business voice services that function like traditional phone services, but
just happen to travel over the Internet. An increasing number of hosted VoIP
services are making premises-based phone systems unnecessary for smaller
businesses. IP phone systems have become the norm in enterprises.
Such developments have already made VoIP a mainstream communication
technology. But while there have been some truly radical advances, VoIP
services - in what we may consider the first phase of VoIP innovation - have
largely emulated traditional phone service. As a result, VoIP' s disruption of
the traditional telecom services business has to date been far less dramatic
than many expected.
That first phase has ended, and a more dynamic second phase is now underway.
The last few years have seen the development of new kinds of VoIP services
with great potential to disrupt the telecom market. In this phase, innovators
are attempting more deliberately to undermine the technical and commercial
models of traditional telephony.
The changes wrought by VoIP technology transform the dynamics of the market in
ways that provide a significant opportunity to lessen incumbents' commercial
These changes include:
- Decentralization or virtualization of application delivery.
Because applications and services can serve users from anywhere, there is no
need to have nationwide or global infrastructure to be a nationwide or global
provider. This drastically lowers the cost of entry into the telecom services
- Democratization of application development and delivery. The fact
that developers and providers no longer have to buy, or gain access to,
switching platforms costing millions of dollars opens the telephony business
to a far broader range of potential providers.
- Hybridization and integration of applications and services,
allowing developers to make voice one part of larger and more complex
services, rather than a standalone service.
- Enrichment of applications and services. Because IP connections can
deliver various types of data along with the basic voice packets, providers
can offer rich services that incorporate everything from universal presence
detection to HD voice to integrated video.
However, the extent to which innovative new VoIP services will actually
disrupt the telephony market remains far from certain. Incumbent providers
still have substantial means to resist such disruption - in part by turning
technological innovations to their own advantage.
Disruptive VoIP Services: What Carriers Need to Know first clarifies
how the concept of disruption applies to the impact of VoIP innovation on the
telecom services market. It catalogs the advances that VoIP brings to
traditional telephony models, practices, and concepts, then categorizes the
innovative VoIP services with the most disruptive potential. It also
identifies the economic and commercial forces that will influence the impact
of VoIP innovation and projects a number of specific results that this
combination of factors will produce.
Table of Contents
LIST OF FIGURES
I. INTRODUCTION & KEY FINDINGS
- 1.1 Key Findings
- 1.2 Report Scope & Structure
II. HOW VOIP INNOVATION DISRUPTS
- 2.1 Undermining Models
- 2.2 Transforming the Development & Delivery of Applications & Services
- 2.3 Redefining Basic Telephony Concepts
III. A FLOOD OF POTENTIALLY DISRUPTIVE SERVICES
- 3.1 Major Categories
- SIP Trunking: Borderline Disruption
- Platform Providers: The Foundation of Future Disruption
- Web-Activated VoIP: Racing the Arbitrage Countdown
- Mobile VoIP: Arbitrage Plus
- Voice Integration With Social Networks: Stuck in the “Potential” Stage
- 3.2 Unique Disrupters
- Google Voice: Potentially the Biggest Disrupter of All
- Voxbone' s iNum Service: A Long Road to Disruption
- Skype: From Consumer to Business Disruption
- 3.3 Technologies & Components
- Virtual Numbers: Disruptive Only in Combination
- Voice/Speech Recognition: Showcase for VoIP Flexibility
- Enhanced Voicemail: Jostling for Attention
- HD VoIP: Disruptive in the Short Term
- 3.4 Other Potential Disrupters
- Web-Based Conferencing: Benefits of Integration
- Hardware-Based Internet VoIP: Plug-In Phone Service
- Internet Video Communication: Looking for Glue
- Deep Dialing: Disruption or Customer Retention
- Ad-Supported International Calling: A Permanent Niche Service
IV. MARKET IMPACT OF INNOVATIVE VOIP SERVICES
V. POTENTIAL DISRUPTERS TO WATCH
- 5.1 8x8 Inc.
- 5.2 BroadSoft Inc.
- 5.3 CallSpark Inc.
- 5.4 Cbeyond Inc.
- 5.5 Cloudvox (Ifbyphone Inc.)
- 5.6 DeFi Mobile Ltd.
- 5.7 Fonality Inc.
- 5.8 Fonolo (FonCloud Inc.)
V. POTENTIAL DISRUPTERS TO WATCH (CONTINUED)
- 5.9 fring (fringland Ltd.)
- 5.10 Google Inc.
- 5.11 Global IP Solutions Inc. (GIPS)
- 5.12 iCall Inc
- 5.13 Ifbyphone Inc.
- 5.14 IntelePeer Inc.
- 5.15 Iotum Corp.
- 5.16 iSkoot Inc.
- 5.17 Jaduka (Network Enhanced Telecom LLP)
- 5.18 Jajah Inc. (Telefonica O2 Europe plc)
- 5.19 jaxtr (Sabse Technologies Inc.)
- 5.20 Jingle Networks Inc.
- 5.21 Junction Networks Inc./OnSIP
- 5.22 MagicJack (Ymax Corp.)
- 5.23 MessageSling
- 5.24 mig33 (Project Goth Inc.)
- 5.25 Mobivox (Sabse Technologies Inc.)
- 5.26 Nimbuzz BV
- 5.27 Ooma Inc
- 5.28 OrganIP/CallbyName (Digitrad Communications Inc.)
- 5.29 ooVoo LLC
- 5.30 Palringo Ltd.
- 5.31 PhoneFusion Inc.
- 5.32 PhoneTag Inc. (formerly SimulScribe)
- 5.33 Phonevite (Ifonoclast Inc.)
- 5.34 Promptu Systems Corp.
- 5.35 Raketu Communications Inc.
- 5.36 Rebelvox LLC
- 5.37 Rebtel Networks AB
- 5.38 Ribbit Corp. (BT)
- 5.39 Ring Plus Inc.
- 5.40 Sabse Technologies Inc.
- 5.41 TokBox Inc.
- 5.42 Truphone (Software Cellular Network Ltd.)
- 5.43 Vidtel Inc
- 5.44 Vlingo Corp
- 5.45 Vonage Holdings Corp.
- 5.46 VoxOx (TelCentris Inc.)
- 5.47 Yext Inc.
- 5.48 YouMail Inc
- 5.49 Yugma (YSL Holdings Ltd.)
- 5.50 Yuuguu Ltd.
APPENDIX A: ABOUT THE AUTHOR
APPENDIX B: LEGAL DISCLAIMER
LIST OF FIGURES*
- SECTION II
- Figure 2.1 VoIP Innovation Disruption Matrix
- Figure 2.2 Undermining Explicit or Implicit Traditional Telephony Models
- Figure 2.3 Practical Benefits of VoIP Innovation
- Figure 2.4 Telephony Concepts Redefined by VoIP Innovation
- SECTION III
- Figure 3.1 Types of Potentially Disruptive VoIP Services
- SECTION IV
- Figure 4.1 External Factors Affecting Potentially Disruptive VoIP
- Figure 4.2 Future Impact of VoIP Innovation on Telecom Services Market
* All charts and figures in this report are original to Heavy Reading.