#centrex #hostedtelephony #hostedservices Carriers are Missing a $16 Billion Opportunity!
In recent news, it was reported that US carriers are failing to address a $16 billion opportunity. According to research from consulting firm Inzenka, US telcos are missing out on an estimated $16 billion in annual revenue by failing to adequately address the needs of SME customers.
Specifically, Inzenka pointed to the failure to offer appropriate VoIP and cloud services to SME customers as the main reason why this revenue was being spurned. In a survey of SMEs, Inzenka found that only 27% are currently using VoIP, but more than 30% expressed a desire to do so within two years. What’s more, 1/3 of all respondents stated a willingness to buy other cloud services from their chosen VoIP provider.
Any telco with a hosted VoIP solution has the potential to add value by offering further bundles of hosted services, be they conferencing, fax, storage or other applications. With a hosted VoIP solution as the core offer, there is significant upside potential, as we have suggested before.
This problem is not new – it’s been widely recognised that telcos are more orientated to the needs of larger corporate and enterprise clients, but fail to recognise the significant opportunity represented by the SME market.
But not doing so represents a considerable lost opportunity – in the US, more than 99.7% of all employer firms fall into the definition of an SME. It’s the same in the UK, where 99.3% of firms have fewer than 49 employees. Indeed, this number of echoed across Europe. Taken globally, the $16 billion figure starts to look like a significant underestimate.
So not only is there considerable potential to address this market, but there are easy ways in which to do it. We have seen our customers grow significant subscriber volumes from this part of the market, taking advantage of the failure of competitors to pay attention to the needs of SMEs. By using a Hosted or Mobile PBX solution to gain a foothold, they have been able to capitalise on SME demand for complementary services to capture more revenue.
This is surely too good an opportunity to miss – of course, we can help create a strategy for launching an enterprise / SME offer – but remember that if you don’t take steps to address this market, one of your competitors will.