Cablecos and telcos risk losing SME biz to hosted service providers

Jim O'Neill, FierceEnterpriseCommunicationsOperators enjoy big margins in commercial services and are continually looking to grow their revenue in the enterprise and small business markets. However, both cable and telecom companies may face a new competitive threat in the near future. According to a report by Insight Research, a new category of hosted service providers is emerging with PBX-like voice offerings that promise lower recurring costs, and minimal equipment fees. These hosted VoIP providers are going after small businesses, and Insight says revenue from that market should grow from $513 million in 2011 to nearly $1.2 billion in 2015. Some of the players in the hosted VoIP market include 8x8 (Nasdaq: EGHT), Aptela, Fonality, and Nextiva. Read more...

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