A new study entitled "U.S. Traditional and Next-Generation Centrex Services Markets," concludes that the IP Centrex market is expected to grow from 13,000 lines in 2001 to 10 million lines by 2008. Traditional Centrex markets, which represented 16.5 million lines in 2001, are likely to decline to approximately 10.9 million lines by 2008. The report was written by Frost & Sullivan.
Traditional Centrex services use switched networks offer better flexibility, minimal up-front investment and low exit costs. IP Centrex services that offer more economical solutions packaged with a host of enhanced features. Flat rate pricing should fuel growth.
As IP Centrex service providers begin bundling voice with Internet access and data services, they are likely to attract small businesses. Most IP Centrex deployments at present are with small businesses that have less than 100 lines.
The direct competition of another evolving market -- IP-PBXs -- poses a threat to IP Centrex, the study warns. On-premises servers offer greater control, better features, and lower prices. To combat the challenges posed by these products, Centrex service providers must focus on constantly adding value to their packages in order to retain competitiveness.
The study also says that IP Centrex might increase the penetration of network-based business voice services from 15.4% in 2001 to 17.4% in 2008.
"In an environment of rapidly evolving technologies, enterprise customers are likely to shift their preferences toward network-based, carrier managed solutions in order to avoid equipment obsolescence concerns and to have a greater flexibility in accommodating downsizing or growth," says Frost & Sullivan Research Analyst Elka Popova.
Frost & Sullivan will hold a conference call at 1 p.m. (EDT)/ 10 a.m. (PDT) on August 20, 2002 to provide manufacturers, end-users and other industry participants an overview, summary, challenges and latest coverage on U.S. Traditional and Next-Generation Centrex Services Markets.
