IP Centrex/Hosted PBX on the rise

IP Centrex/Hosted PBX is one of the emerging services/technologies that allow businesses to collapse their voice and data traffic onto a single network.

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By  Neil Denslow Published  March 21, 2003

IP Centrex/Hosted PBX is one of the emerging services/technologies that allow businesses to collapse their voice and data traffic onto a single network. It is also one of the IP services that will help carriers add value to their data networks, and as such, In-Stat/MDR contends that it will give carriers a way to increase the margins on their existing data services and increase their overall business profitability, while protecting their existing revenue streams.

The research firm therefore predicts significant growth for IP Centrex/Hosted PBX over the next several years. In fact, it expects worldwide IP Centrex/Hosted PBX service revenues to experience a projected compound annual growth rate (CAGR) of 105.7% from 2002-2007.Revenues derived from sales of IP Centrex/Hosted PBX infrastructure, such as application servers and seat licenses, should also post a CAGR of 141.8% over the same period.

“[However,] the market won’t really take off until the US RBOCs (regional Bell operating companies) start deploying their own IP Centrex/Hosted PBX solution, and this won’t happen until at least mid to late 2004,” warns In-Stat/MDR’s senior analyst, Daryl Schoolar.

The research firm also advocates IP Centrex/Hosted PBX as a way of fighting off the threat VoIP poses to carriers’ voice revenue. At present, VoIP only accounts for a small percentage of voice traffic, however this is starting to change. Carriers therefore need to investigate IP Centrex/Hosted PBX as this offers a service that carriers can to sell to businesses in order to compete with enterprise VoIP solutions.

End users are likely to appreciate the switchover to IP Centrex/Hosted PBX, as according to In-Stat/MDR, it offers a variety of features that are persuading companies to migrate to the technology. The four biggest drivers though, are the fact that it simplifies the wide area network (WAN), increases messaging features for end users, supports unified, multi-location calling features, as well as simplifying changes to the network, such the addition of extra phones or the re-location of existing ones.

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