South African Hosted IP Services Markets

Published by: Frost & Sullivan

Published: Dec. 10, 2007 - 87 Pages

Table of Contents

1. Overview

1. Executive Summary

2. List of Acronyms

3. Introduction

4. Market Definitions

5. Market Overview

6. Market Engineering Analysis

7. Forecasts

8. Regulatory Overview

9. Demand and Pricing Analysis

10. Competitive Analysis

11. Conclusion

Abstract

Research Overview

This Frost & Sullivan research service titled South African Hosted IP Services Market provides a comprehensive overview of current levels of demand for hosted IP services and the various drivers and restraints pushing/inhibiting the provision of this service. The industry opportunities and markets that show growth potential are also identified in order to highlight areas of value add to the business. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: IP telephony, contact centres, ISPs/ASPs, vendors, suppliers and distributors.

Technologies

The following technologies are covered in this research:

• IP - VoIP/Phone
• SIP
• NGN
• Unified Communication
• Trunking
• PBX
• Softwitch
• H.323
• Voice over wireless broadband (VoWLAN),
• East African Submarine Cable System (EASSy)
• SAT-3

Market Overview

Hosted IP Services: A Viable Solution for Economies with Low Equipment Access

Hosted IP services provide the perfect solution to several small, medium and micro enterprises (SMMEs) in South Africa that are having difficulty in acquiring and maintaining in-house technology infrastructure. Since the penetration of communication equipment is so low in the region, these companies find hosted IP services a critical component and an alternative means of providing state-of-the-art technology for competitive advantage.

The increasing need among enterprises to focus on the core processes of the business is also resulting in large enterprises opting to use hosted IP services to leverage the business operations that call for high focus on core competencies. "The current uptake of IP telephony/VoIP and unified communications promises a trend that is anticipated to increase the demand for hosted IP services," observes the analyst of this research service. "IP telephony’s ability to reduce voice costs is making the service attractive across a spectrum of users."

Providing Unique Service Features Cost-effectively Determines the Success of Hosted IP Service Providers amidst Intense Competition

Although the overall market has high growth potential with many opportunities available for market expansion, there is intense competition where pricing and service uniqueness in meeting customer needs is becoming critical. In order to sustain this competition, hosted IP providers require sufficient broadband at cost-effective rates although this is not the case in South Africa. The impact of exchange rate on the IT expenditure and the lack of skilled personnel are placing the local market at a disadvantage, as potential customers can host services with international providers cost-effectively.

Fortunately, current investments in the telecommunications can help ease these challenges by providing room for fair competition in this space. Several participants are making their way into the growing market, which through consolidation is expected to reduce the number of hosted IP service providers, while creating stiff competition among participants. Hence, hosted IP service providers must wield progressive technology to effectively customise the service offering according to specific customer needs. "Being early in providing unique service features that meet client requirements can guarantee a high market share," says the analyst. "In addition, forming strong relationships within the value chain can increase customer loyalty, while assuring better business deals with the suppliers."

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