Migration to business VoIP faces customer inertia

Cable operators are encountering customer inertia when it comes to getting business to move from existing services onto hosted VoIP service that provide more features and potentially lower total operating costs. Changing phone providers and hardware, as well as the reluctance to throw out a perfectly functional phone switch are significant hurdles.

Switching service providers and hardware is described as a "monumental hassle" for businesses of all sizes, says Multichannel News, with one softswitch vendor commenting that the competitor for new services isn't "'the other guy' - it's the status quo."

With IP being where the commercial voice market is heading, cable providers are working the hosted VoIP services angle to gain an edge on incumbent providers. Cox Business is leveraging BroadSoft's platform for its VoiceManager service to deliver bells and whistles such as automated attendant, web access to voice mail and find me/follow me services. Cablevision Systems Optimum Lightpath is offering a voice and data bundled service that includes the cost of CPE, such as phones and routers, into the monthly cost, looking for customers willing to spend between $30 to $40 per month per employee on voice and data.

NPRG puts the total market for business communications services at $110 billion in 2008, with hosted IP voice accounting for around $16 billion or so - leaving plenty of room for growth moving forward.

For more:
- Multichannel News discusses the challenges cable provider find in business VoIP. Article [1].