Colocation

TMCnet - The World's Largest Communications and Technology Community
 
| More

Enterprise Communications Featured Article


November 20, 2007

SIP Services Expected to Become Mainstream by 2012

By Susan J. Campbell, TMCnet Contributing Editor


Voice over IP (VoIP) and Session Initiation Protocol (SIP) are set to soon become a mainstream option. According to ABI Research (News - Alert), IP Networks deployed by fixed and mobile operators will be driving this change, in addition to the increasing popularity of “smart” devices such as PDAs and smartphones.


ABI Research Principal Analyst Ian Cox (News - Alert) explained in a statement on Tuesday: “New affordable price points and ease of use will allow consumers to benefit from SIP services such as instant messaging, video sharing, and conferencing, which will join VoIP as it takes over from circuit-switched voice.”

Cox added: “We have seen the start of a revolution, as mobile handsets become the product of choice not just for voice and simple text messaging, but also for any task that one can perform on a personal computer. And as networks are replaced by ‘flat architecture’ all-IP with SIP application servers in the core, all forms of communications become possible.”

SIP services are expected to develop into the norm after 2010 and then rapidly begin to dominate the world’s telecom markets. By 2012, nearly half of the world’s telecom users will be using at least one SIP service, but will more likely have many services from multiple devices that are able to communicate with other users and services across the Web and between enterprise and public networks.

 This should generate more than $150 billion in service revenue annually with cumulative infrastructure capital expenditure of more than $10 billion by that date.

”Using SIP, telephony becomes another Web application, which can be integrated into other Internet services,” expounded Cox. “It enables service providers to build converged voice and multimedia services.”

ABI Research predicts that by 2012, nearly 1.2 billion VoIP users will be active, with most users also subscribing to several forms of messaging and video sharing driven by interest in user-generated content.

SIP will also be supporting servicing such as click-to-dial, buddy lists, e-mail and Web access. These services are assumed to be “core” services and included as standard in any service offering and bundled with broadband access. A portion of the VoIP users will also be connected to an FMC service.

ABI Research reviews the global landscape for SIP services in its recent report The Worldwide SIP Services Market . It includes forecasts for the market potential to 2012, including users (consumer versus business), service revenue, and capital expenditure.

Consumers are definitely becoming increasingly mobile, both in work and in play, helping to drive the market demand for smartphones and other mobile communication devices. In addition to the communication functionality that consumers demand in such devices, they also want access to everything they want and need, thus generating increased demand for the support for VoIP and SIP.

These projections imply significant opportunities over the next few years for those providing specializing in SIP solutions. For those that do not, it may be time to consider expanding into this avenue.

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.

Want to learn more about SIP? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. The papers are authored by industry leaders, who, in turn, receive qualified sales leads from interested parties. Check here for the latest in CRM information.





 
Follow the Colocation Community on Twitter