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August 11, 2015

Fixed and mobile voice dominate telecoms spend

Kable Global ICT Intelligence: VoIP is gaining momentum but has not caught up yet.

By Alexander Sword

Kable analysis shows that fixed and mobile voice are the main areas of telecoms targeted for investment by businesses.

Fixed voice is attracting investment this year from 19.3 percent of firms, the same number as are investing in mobile voice.

Meanwhile, 17.9 percent would be investing in wireless data networks such as 3G and wi-fi, the same number as are investing in wired data solutions such as WAN, broadband and VoIP.

In addition, converged voice and data networks would attract investment from 16 percent.

The figures suggest that traditional forms of communication such as fixed voice may be around for a while and are not imminently going to be replaced by solutions such as VoIP.

Kate O’Brien, Marketing Director at Daisy Group, comments: "VoIP, and SIP trunking, are really starting to take off. SIP trunking is effectively a half-way house between a standard PBX business phone system and a full VoIP system, and it seems that once businesses start experimenting with VoIP they are quick to explore its benefits further."

The survey also revealed that 69.9 percent currently have broadband, while 61.4 percent are considering investment in the next two years. 69.8 percent currently have Ethernet and 58.1 are considering investment in the next two years.

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Meanwhile, 61.1 percent currently have managed WAN services, with 56.1 considering investment in the next two years. These figures fall to 56.5 and 54.7 percent respectively for CPE-based VPNs, and to 55.7 percent and 53.8 for optical transport.

Underlining the increasing bundling of telecoms services, 55.1 percent already had voice and access bundles but a higher figure of 58.9 percent planned to invest in them in the next two years.

In general, businesses appeared to be happy with the providers of the services. Cisco was found to be the highest rated network services provider, with an average score of 3.4 out of 4, with IBM and Microsoft coming in joint second place with 3.3.

Dell and HP followed with scores of 3.3 and 3.2 respectively.

All figures come from Kable’s ICT Customer Insight survey, which polled 2685 respondents, from across the world in Q4 2014. The survey findings include data on hardware budget allocation, telecommunications budget allocation and software budget allocation. Subscribe to Kable here.

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