The Voice Over Internet Protocol (VoIP) Market 2013-2018: Prospects for Skype and Other Players

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1. Executive Summary
1.1 Developments in the VoIP Market 1.2 VoIP Market Drivers 1.3 Mobile VoIP Usage to Accelerate 1.4 Restraints to VoIP Uptake 1.5 Benefits of This Report 1.6 Who is This Report for? 1.7 Methodology 1.8 Global VoIP Revenues Forecast 2013, 2015, 2018 1.9 Regional VoIP Revenues Forecast 2013, 2015, 2018

2. Introduction to the Market

2.1 What does VoIP Signify? 2.2 The VoIP Protocol Maze 2.3 How Does VoIP Work? 2.4 Difference Between Traditional and Internet Telephony 2.5 Advantages of VoIP 2.6 Disadvantages of VoIP 2.7 Current VoIP Market 2.7.1 Net Neutrality 2.8 VoIP Market Definition

3. Global VoIP Market Forecast 2013-2018

3.1 Global VoIP Market Revenue Forecast 2013-2018 3.2 Global VoIP Subscribers Forecast 2013-2018 3.3 Softphones 3.3.1 Global Softphone Unit Sales Forecast 2013-2018 3.3.2 Global Softphone Revenue Forecast 2013-2018 3.4 Global SMS Usage Forecast 2013-2018 3.5 Global VoIP Market Drivers and Restraints

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4. Regional VoIP Revenue Forecast 2013-2018
4.1 Regional VoIP Revenue Forecast Summary 2013-2018 4.1.1 Regional VoIP Revenue Market Share Forecasts 2013-2018 4.2 North American VoIP Market 2013-2018 4.2.1 North American VoIP Revenue Forecast 2013-2018 4.3 Latin America VoIP Market 2013-2018 4.3.1 Latin America VoIP Revenue Forecast 2013-2018 4.4 European VoIP Market 2013-2018 4.4.1 European Operators Throttling VoIP Services 4.4.2 European VoIP Revenue Forecast 2013-2018 4.5 Asia Pacific VoIP Market 2013-2018 4.5.1 Asia Pacific VoIP Revenue Forecast 2013-2018 4.6 Middle East and Africa VoIP Market 2013-2018 4.6.1 Middle East and Africa VoIP Revenue Forecast 2013-2018

5. Current VoIP Market and Future Developments

5.1 Fixed Telephone Subscriptions Will Continue to Decline 5.2 Mobile Subscription Reaching Saturation Point 5.2.1 Mobile Subscriptions Forecast 2013-2018 5.3 Global Mobile Broadband Subscriptions Forecast 2013-2018 5.4 Global Fixed Broadband Subscriptions Forecast 2013-2018 5.5 Fixed Broadband Subscriptions by Country 5.6 Fixed Broadband by Technology Forecast 2013-2018 5.7 Importance of Voice Revenues 5.8 Roaming Regulations 5.9 Impact of Bill shock and Roaming Regulations on VoIP 5.10 VoIP as a Bypass Service 5.11 Data Roaming 5.12 Voice vs. Data 5.13 Voice Revenues Declining Rapidly

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5.14 LTE and VoIP VoLTE 5.15 Market Opportunity for OTT Players 5.16 VoLGA or VoLTE 5.17 VoLGA Forum 5.18 LTE for HD Calls

6. SWOT Analysis of the VoIP Market

6.1 Strengths 6.1.1 VoIP Will Pave the Way for IP Convergence 6.1.2 Increase Penetration into Enterprise 6.1.3 Single-Device Subscription Offering 6.1.4 Portability 6.2 Weaknesses 6.2.1 Availability during Power Outages 6.2.2 QoS and Bandwidth Availability 6.2.3 Emergency Services 6.3 Opportunities 6.3.1 Lower Infrastructure Development Cost 6.3.2 Reduction in Operational and Maintenance Costs 6.3.3 Developing New Apps 6.3.4 Generating Additional Revenue Streams 6.4 Threats 6.4.1 Spam over Internet Telephony (SPIT) 6.4.2 Spoofing and Identity Threat

7. Expert Opinion
7.1 Visiongain Interview with Skype 7.1.1Market Drivers for VoIP 7.1.2 VoIP Market Growth 7.1.3 Leading Countries for VoIP

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7.1.4 VoIP Market Size 7.1.5 Operators Throttling VoIP 7.1.6 VoIP Revenue per User 7.1.7 Strategy 7.2 Visiongain Interview with Vonage 7.2.1 Key Trends in the VoIP Market 7.2.2 Key Challenges in the VoIP Market 7.2.3 Leading Regions for VoIP 7.2.4 Operators Throttling VoIP 7.2.5 VoIP Growth Rates 7.2.6 Technical Developments

8. Leading Companies in the VoIP Market

8.1 Comcast Cable 8.2 AT&T 8.3 Verizon 8.4 Orange 8.4.1 EE and Orange 8.5 Facetime from Apple 8.6 Google Voice/Google Talk 8.7 Vonage 8.8 Jajah 8.9 Viber 8.10 Nortel 8.11 RTX 8.12 Sipcom 8.13 Skype 8.13.1 The Skype and Microsoft Alliance 8.13.2 Monetising Skype 8.13.3 Skype vs. the Others

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8.13.4 The VoIP Messaging Threat 8.13.5 VoIP for Video Calls 8.13.6 Skype 3D Video Calls are Under Development 8.13.7 Operators who Embrace VoIP 8.14 Sipgate 8.15 Yeastar 8.16 SPIRIT DSP 8.17 Global VoIP Client Market Share 2013 8.17.1Global IM Client Market Shares 2013 8.18 Other leading Companies in the VoIP Market

9. Conclusions
9.1 Cost will be the Major Driver for VoIP 9.2 Growth in Smartphone and Broadband Penetration 9.3 Deployment of LTE and WiMax Networks 9.4 Collaborations and Partnerships to Boost Growth 9.5 Operators will Embrace VoIP 9.6 Future of Mobile VoIP 9.7 Global VoIP Market Forecast Summary 2013-2018 9.7.1 Global VoIP Revenue Forecast 2013-2018 9.7.2 Regional VoIP Revenue Forecast 2013-2018 9.7.3 Global VoIP Subscribers Forecast 2013-2018 9.7.4 Global Softphone Unit Sales Forecast 2013-2018 9.7.5 Global Fixed Broadband Subscriptions Forecast 2013-2018 9.7.6 Global Mobile Broadband Subscriptions Forecast 2013-2018

10. Glossary

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List of Tables
Table 1.1 Global VoIP Revenues Forecast Summary 2013, 2015, 2018($bn, CAGR %) Table 1.2 Regional VoIP Revenues Forecast Summary 2013, 2015, 2018($bn, CAGR %) Table 2.1 VoIP Protocols Table 2.2 Comparison Between Traditional and Internet Telephony Table 3.1 Global VoIP Market Revenues Forecast 2013-2018($bn, AGR %, CAGR %) Table 3.3 Global VoIP Subscribers Forecast 2013-2018(mn, AGR %, CAGR %) Table 3.5 Global Softphone Unit Sales Forecast 2013-2018(mn, AGR %, CAGR %) Table 3.7 Global Softphone Revenue Forecast 2013-2018(mn, AGR %, CAGR %) Table 3.9 Global SMS Usage Forecast 2013-2018(trillion, AGR %, CAGR %) Table 3.11 Global VoIP Market Drivers and Restraints Table 4.1 Regional VoIP Revenue Forecast 2013-2018($bn, AGR %) Table 4.6 North America VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %) Table 4.9 Latin America VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %) Table 4.12 European VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %) Table 4.15 Asia Pacific VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %) Table 4.18 Middle East and Africa VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %) Table 5.1 Fixed Telephone Subscriptions Forecast 2013-2018(mn, AGR %, CAGR %) Table 5.3 Regional Mobile Cellular Penetration per 100 Inhabitants 2013(%) Table 5.5 Mobile Cellular Subscriptions Forecast 2013-2018(mn, AGR %, CAGR %) Table 5.7 Global Mobile Broadband Subscriptions Forecast 2013-2018(mn, AGR %, CAGR %) Table 5.9 Global Fixed Broadband Subscriptions Forecast 2013-2018(mn, AGR %, CAGR %) Table 5.11 OECD Fixed Broadband Subscriptions by Country 2012 (millions) Table 5.12 OECD Fixed Broadband Subscriptions by Country December 2012 (millions) Table 5.17 New Retail Price Caps on EU Roaming Charges (Euro Cents) Table 5.18: New Retail Price Caps (on prices operators charge each other) on EU Roaming Charges (Euro Cents) Table 5.21 Total Mobile Operator Revenue vs. Voice Only Revenue Forecast 2013-2018 (US$ Trillions, Voice %, CAGR %)

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Table 5.23 Traditional Mobile Operator Voice Revenues vs. VoIP Revenues Forecast 2013-2018 (US$ Billions, AGR%, CAGR %) Table 5.25 Options to Re-engineer Voice Call Networks Table 5.26 VoLGA Forum Members 2013 Table 5.27 LTE Roll Out Schedule 2013 (Company, Details) Table 6.1 SWOT Analysis of the VoIP Market 2013-2018 Table 8.1 Comcast Cable Company Overview 2012 Table 8.2 Comcast VoIP Solutions Table 8.3 Comcast VoIP Phone Features Table 8.4 AT&T Company Overview 2012 Table 8.5 AT&T VoIP Solutions Table 8.6 Verizon Company Overview 2012 Table 8.7 Verizon VoIP Solutions Table 8.8 Orange Company Overview 2012 Table 8.9 Orange VoIP Solutions Table 8.10 Apple Company Overview 2012 Table 8.11 Google Company Overview 2012 Table 8.12 Vonage Company Overview 2012 Table 8.13 Vonage VoIP Solutions Table 8.14 Jajah Company Overview 2012 Table 8.15 Jajah VoIP Solutions Table 8.16 Viber Company Overview 2012 Table 8.16 Skype Key Statistics 2012 Table 8.17 Sipgate VoIP Phone Features Table 8.18 Sipgate VoIP Call Rates Table 8.19 Yeastar Products Overview Table 8.20 SPIRIT DSP Key Products Overview Table 8.22 Global Top 10 IM Client Market Share 2013 (%) Table 8.24 Other Leading Companies in the Market 2013 (Company, Product /service) Table 9.1 Global VoIP Revenue Forecast Summary 2013, 2015, 2018 ($bn, CAGR %)

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Table 9.2 Regional VoIP Revenue Forecast Summary 2013, 2015, 2018 ($bn, CAGR %) Table 9.3 Global VoIP Subscribers Forecast 2013, 2015, 2018 (mn, AGR%, CAGR %) Table 9.4 Global Softphone Unit Sales Forecast 2013, 2015, 2018 (mn, AGR%, CAGR %) Table 9.5 Global Fixed Broadband Subscriptions Forecast 2013, 2015, and 2018(mn, CAGR %) Table 9.6 Global Mobile Broadband Subscriptions Forecast 2013, 2015, and 2018(mn, CAGR %)

List of Figures
Figure 3.2 Global VoIP Market Revenue Forecast 2013-2018($bn, AGR %) Figure 3.4 Global VoIP Subscribers Forecast 2013-2018(mn, AGR %) Figure 3.6 Global Softphone Unit Sales Forecast 2013-2018(mn, AGR %) Figure 3.8 Global Softphone Revenue Forecast 2013-2018(mn, AGR %) Figure 3.10 Global SMS Usage Forecast 2013-2018(trillion, AGR %) Figure 4.2 Regional VoIP Revenue Forecast 2013-2018($bn) Figure 4.3 Regional VoIP Revenue Market Share Forecast 2013(%) Figure 4.4 Regional VoIP Revenue Market Share Forecast 2015(%) Figure 4.5 Regional VoIP Revenue Market Share Forecast 2018(%) Figure 4.7 North America VoIP Revenue Forecast 2013-2018($bn, AGR %) Figure 4.8 North America VoIP Revenue Market Share Forecast 2013, 2015 and 2018(% Share) Figure 4.10 Latin America VoIP Revenue Forecast 2013-2018($bn, AGR %) Figure 4.11 Latin America VoIP Revenue Market Share Forecast 2013, 2015 and 2018(% Share) Figure 4.13 European VoIP Revenue Forecast 2013-2018($bn, AGR %) Figure 4.14 European VoIP Revenue Market Share Forecast 2013, 2015 and 2018(% Share) Figure 4.16 Asia Pacific VoIP Revenue Forecast 2013-2018($bn, AGR %) Figure 4.17 Asia Pacific VoIP Revenue Market Share Forecast 2013, 2015 and 2018(% Share) Figure 4.19 Middle East and Africa VoIP Revenue Forecast 2013-2018($bn) Figure 4.20 Middle East and Africa Revenue Market Share Forecast 2013, 2015 and 2018(% Share) Figure 5.2 Fixed Telephone Subscriptions Forecast 2013-2018(mn, AGR %) Figure 5.4 Regional Mobile Cellular Penetration Rate per 100 Inhabitants 2013 Figure 5.6 Mobile Cellular Subscriptions Forecast 2013-2018(mn, AGR %)

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Figure 5.8 Global Mobile Broadband Subscriptions Forecast 2013-2018(mn, AGR %) Figure 5.10 Global Fixed Broadband Subscriptions Forecast 2013-2018(mn, AGR %) Figure 5.13 Top 20 Countries by Fixed Broadband Subscriptions Dec 2012 (%) Figure 5.14 Global Broadband Subscriptions Forecast Share by Technology Type 2013 (%) Figure 5.15 Global Broadband Subscriptions Forecast Share by Technology Type 2018 (%) Figure 5.16 Global Operator Restriction of VoIP Services 2013 (%) Figure 5.19: Global Mobile Operator Revenue Share by Service Type Forecast 2013 (Voice, Data, Messaging, %) Figure 5.20: Global Mobile Operator Revenue Share by Service Type Forecast 2018 (Voice, Data, Messaging, %) Figure 5.22: Total Mobile Operator Revenue vs. Voice only Revenue Forecast 2013-2018 (US$ Trillions) Figure 5.24: Traditional Mobile Operator Voice Revenues vs. VoIP Revenues Forecast 2013-2018 (US$ Billions) Figure 8.21: Global Top 4 VoIP Client Market Share 2013 (%) Figure 8.23: Global Top 10 IM Client Market Share 2013 (%)

Companies Mentioned in This Report

3UK 8X8 Alcatel Lucent Adobe ARM AOL Apple Aspect Communications Asterisk AT&T Avaya Bing

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British Telecom (BT) Broadsoft BSkyB Bouygues Telecom Blizzard CenturyLink China Mobile Cisco Comcast Cox Communications Datora Telecom Deutsche Telekom Digi Ditech Networks E-Plus Everything Everywhere (EE) Fonality France Telecom Free Fring Gadu-Gadu GENBAND GIPS Globe Telecom Google HTC Corp Huawei ICQ Jajah Jaxtr

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Kineto Wireless KPN Netherlands LG LG Electronics, Inc Lingo Localphone Match.com MIRC Mavenir Systems Microsoft Motorola MTN Nextiva Nimbuzz Nokia Nortel O2 Oracle Orange Outlook.com Panasonic PhonePower Primus Plingm Rebtel Research In Motion (RIM) Ringcentral RTX Safaricom Samsung Electronics

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SFR Shoretel Singtel Sipcom Sipgate Skype Software Performance Assurance (SPA) Sonus Networks SPIRIT DSP Sprint Starent Networks SureVoIP TalkTalk Tecore Networks Telappliant Telecom Italia Telefonica Telesphere Tencent QQ Time Warner Cable T-Mobile TRUE Truphone Trixbox Ulticom Verizon Business Verizon Communications Verizon Wireless ViaTalk Viber

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Virgin Media Vitendo Systems Vocalocity Vocaltec Vodafone Voipfone Vonage WhatsApp WiChorus XFIRE Yahoo Yandex Yealink Yeastar ZTE

Government Agencies and Other Organisations Mentioned in This Report

3rd Generation Partnership Project (3GPP) Body of European Regulators Group for Electronic Communications (BEREC) Directorate General of Telecommunications (DGT) European Commission Fraunhofer IIS GSMA Groupe Spciale Mobile Association International Telecommunication Union (ITU) Ministry of External Affairs and Communications OECD: Organisation for Economic Co-operation and Development Saudi Communications and Information Technology Commission (CITC) VoLGA Forum

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The Voice Over Internet Protocol (VoIP) Market 2013-2018: Prospects for Skype and Other Players
Table 4.9 Latin America VoIP Revenue Forecast 2013-2018($bn, AGR %, CAGR %)
2013 Revenues($bn) AGR (%) CAGR (%) 2013-2015 CAGR (%) 2013-2018 Source: Visiongain 18.7 4.9 2014 5.8 17.6 2015 6.9 19.9 2015-2018 21.1 2016 8.4 21.5 2017 10.4 23.4 22.9 2018 12.8 24 2013-18 49.2

Figure 4.10 Latin America VoIP Revenue Forecast 2013-2018 ($bn, AGR %)
14 12 Revenues in $ bn 10 8 6 4 2 0 2013 2014 2015 Year Source: Visiongain 2013 2016 2017 Revenues $bn 2018 AGR % 30 25 20 15 10 5 0 AGR %

Figure 4.11 Latin America VoIP Revenue Market Share Forecast 2013, 2015 and 2018 (% Share) 2013
6.5% 7%

2015
8.3%

2018

Source: Visiongain 2013

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The Voice Over Internet Protocol (VoIP) Market 2013-2018: Prospects for Skype and Other Players
7. Expert Opinion
7.1 Visiongain Interview with Skype
Visiongain conducted an interview with Andrew Malcolm, Senior Director Strategy at Skype about his viewpoint of the VoIP market.

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7.1.1 Market Drivers for VoIP

Visiongain: What are the key market drivers for VoIP?

Andrew Malcolm: The key determining factor for VoIP is connectivity and broadband penetration rates. The growth in broadband penetration in emerging countries especially over mobile networks will enable a whole new segment of the population to access VoIP technology. The next important factor would be to deliver high quality of service to make VoIP successful. There are certain technical challenges related to the quality of service that most providers are dealing with on a regular basis and trying to overcome. However, quality has definitely improved over time. For instance Skype to Skype calls that are true VoIP calls are HD quality now.

A megabyte of data over the mobile network is much more expensive to the consumer than a minute, as minutes are tending towards free and data is tending away from unlimited. As a result, it becomes more expensive to provide VoIP calling.

7.1.2 VoIP Market Growth

Visiongain: How will the VoIP market grow in the next 5 years?

Andrew Malcolm: The VoIP market will continue to grow in the next 5 years as cost of mobile data will not significantly rise in the coming years. In an enterprise based world, VoIP is much more cost effective as compared to using PSTN based communication.

It also depends on the most preferred method of communication amongst subscribers. SMS is becoming increasingly popular as compared to voice calling which means the PSTN market will shrink over time. Even if the numbers of callers grow, actual minutes per caller will not grow. Currently, Skype accounts for a significant portion of the international calling minutes and we expect VoIP minutes to grow steadily in the coming years.

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The Voice Over Internet Protocol (VoIP) Market 2013-2018: Prospects for Skype and Other Players
8. Leading Companies in the VoIP Market
For the purpose of this report we have focussed on companies that provide VoIP as a solution directly to residential, small and medium business (SMB), Enterprise and mobile customers.

Other companies in the VoIP value chain such as Hardware providers (VoIP equipment vendors like Cisco and Avaya) and VoIP platform enablers (Oracle, Aspect Communications) have also been mentioned briefly in this report.

8.1 Comcast Cable

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Comcast Cable is a distinguished provider of video, high-speed Internet and phone services to residential and business customers in the United States. For a brief overview of Comcast and its VoIP solutions, please see Table 8.1 and Table 8.2.

Table 8.1 Comcast Cable Company Overview 2012

Total company revenue $bn High speed internet customers High speed internet penetration Voice customers Voice penetration Video customers Video penetration Key Competitors Headquarters Ticker Website
Source: Visiongain 2013

2012 $62.6bn 19.4mn 36.4% 10mn 18.7% 22mn 41.4% Verizon, Time Warner Cable, AT&T and CenturyLink Philadelphia,PA CMCSA,CMCSK www.comcast.com

Table 8.2 Comcast VoIP Solutions

Product Business VoiceEdge SIP Trunks Features Business Voice Edge is a cloud-based VoIP phone system which offers unified communications solutions and seamless connectivity SIP Trunks provide SIP connectivity between a business's existing IP PBX and the IP network, and route calls between networks

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