Windstream takes top spot in VoIP access, SIP trunking services market, says Frost

Windstream (Nasdaq: WIN) has taken the top spot in the 2012 North American VoIP access and session initiation protocol (SIP) trunking market with more than 22 percent market share, according to analysis by Frost & Sullivan.

The research firm attributed Windstream's success to "creative bundling of data and voice services" and to an aggressive acquisition strategy. Windstream's $2.3 billion acquisition of PAETEC in 2011 resulted in the combination of two of the top five VoIP access and SIP trunking firms and provided Windstream with a nationwide footprint for voice services, observed Frost & Sullivan industry analyst Michael Brandenburg.

In addition, Windstream's Allworx IP PBX platform enables the firm to offer managed on-premises IP telephony as part of its service offerings. The firm also offers hosted IP telephony and unified communications (UC) services.

"These three options align very well with Windstream's go-to-market strategy of selling customers on holistic UC solutions, rather than disparate services, which is the strategy employed by most of its competitors," said Brandenburg.

Windstream has focused on the requirements of small to medium-sized business customers. It only provides its VoIP trunking services over its multiprotocol label switching (MPLS) and data networks in order to maintain quality of service for voice as well as to provide bundled pricing, Frost & Sullivan noted.

In a recent report, Frost & Sullivan noted that the VoIP access and SIP trunking service market is growing rapidly as IP-based services displace legacy telecom services, creating opportunities for service providers to increase their revenues.

Last year, large enterprises began to look seriously at VoIP access and SIP trunking services, and service providers saw more than twice the penetration rate into those enterprises compared with 2010.

The increase in the VoIP access and SIP trunking service market has been strong across businesses of all sizes and industries, as medium-sized and large enterprises have become more comfortable with these technologies.

The research firm noted that as more businesses migrate to an IP-based UC infrastructure, VoIP access and SIP trunking services will become more appealing because they eliminate the need for legacy telecom equipment.

For more:
- see Frost & Sullivan's Windstream release and report summary

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