As VoIP 1.0 softswitches near end-of-life, service providers face decisions on how to evolve their voice networks to be more agile, competitive, and profitable. There's a softswitch migration coming, so what are the replacement options? What is the role of the cloud-based vs cloud-building solutions?
The VoIP market in the United States is strong and it's growing. VoIP subscriptions grew 5% annually according to the latest FCC data. Yes, there’s cord-cutting and wireless-only homes, but there are still over 60 million residential phone lines, mostly VoIP, in the U.S. Some customers still want a landline and there are good reasons for that.
The U.S. VoIP market is strong and it's growing. Despite cord-cutting and wireless-only homes, VoIP subscriptions grew 5% from 2016 to 2017 according to FCC data. VoIP lines have grown 39% since 2013! There are 67 million interconnected VoIP subscriptions, representing 57% of all wireline phone lines in the U.S., upping its share from 52% in 2016. VoIP remains a lucrative market with strong margins.
The U.S. VoIP market is strong and it's growing. VoIP subscriptions have grown 32% since 2013, increasing at a compound annual growth rate of 10%. And interconnected VoIP subscribers outnumber wireline switched access lines for the first time ever in the FCC's biannual status report.
With the recent BroadSoft and GENBAND acquisitions, cable MSOs, ISPs and telcos must be asking: what is the future of my VoIP softswitch network? Is my current supplier the one that can take me to the web-scale, virtualized software future?
Rural telcos are adopting VoIP, but it's a slow go. According to the NTCA's latest survey, just one-third of members have a VoIP service offering. Today's legacy networks are dangerously obsolete and telcos need to move to next-gen IP solutions. Cloud sourcing next-generation VoIP infrastructure can help telcos migrate to IP faster in order to deliver a better experience to their customers and realize impactful financial and operational improvements.
For the past several years I’ve started the year with a post looking back on how service provider voice is moving away from legacy approaches to a radically new solution we call the cloud voice platform (see last year’s Service Provider Voice - On the Road to the Cloud).
2015 was another banner year for moving service provider voice from old school ways to deliver voice to cloud-based solutions. As residential and business VoIP continues the shift to cloud delivery models, that transition is also happening to service provider VoIP infrastructure. As part of the movement to web-scale, virtualized solutions, cloud voice platforms are increasingly adopted by all types of service providers to power new services and replace aging, obsolete networks.
I find that NFV and cloud get conflated frequently and, while related, they are not the same. Even the term cloud can represent distinct approaches and adverse philosophies to next-generation infrastructure solutions. NFV is integral to the cloud, but a true cloud solution is much more.
I spend many hours talking with executives and senior leadership at all types of broadband service providers—cable companies, ISPs and telcos. I really like to dig in and see what challenges they face, what keeps them up at night and what goals they are driving for and how they want to improve their companies. For those that have delivered VoIP services for decades, including CLECs, ILECs and cable providers—executives at those companies are facing a changing and challenging landscape for their voice services over the next five years.