Bandwidth, Inteliquent, Level3 and Peerless tops among VoIP carriers

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Business Porting Update for 2H19

ShareTracker has released new data detailing business porting trends during the third and fourth quarters of 2019. The report highlights U.S. businesses that changed telephony carriers and kept their telephone numbers during that time period, with a focus on VoIP carriers.

Today, it should be noted, most of the voice traffic within telco, MSO and even mobile networks can be considered VoIP. ShareTracker’s report focuses on brands who do not provide the “last mile” of service to the end customer, and who are considered fixed virtual providers. Such as Twilio and RingCentral.

Here are the key findings from the report:

US Businesses and Carrier Changes

Business ports into fixed carriers saw a slight decrease in 4Q19 compared to the third quarter, while business ports into mobile carriers remained somewhat constant.

Yet, ports into VoIP carriers have increased between 3Q19 and 4Q19. This has emerged as the largest segment.

  • Business ports out of VoIP carriers, meanwhile, remained the lowest category for the two quarters while business ports out of fixed carriers remained the highest category.

  • The majority of business ports from fixed carriers went to fixed carriers, but the overall count decreased in 4Q19 compared to 3Q19.
  • The majority of business ports into VoIP came from fixed carriers, yet the overall count of ports into VoIP increased in 4Q19 compared to 3Q19.

In addition, most business ports into mobile carriers originated from mobile carriers, while of the remaining come from fixed carriers.

VoIP Market Leaders

 Bandwidth.com, Inteliquent, Level 3, and Peerless now comprise more than 70 percent of the VoIP business landscape.

These organizations, provide out of footprint access to MSOs and telcos, as well as numbers to leading VoIP brands such as Grasshopper, Mitel, RingCentral, and Dialpad.

Vonage, Twilio, and 8×8 dominate the branded VoIP landscape, followed by smaller players like Grand Central or VoIPStreet and pure chat/SMS providers such as Aerialink and Zipwhip.

Carrier Changes and US Business Type

According to our research, businesses who switched to a VoIP brand during 2H19 are more likely to be in the healthcare and social assistance, professional, scientific and technical services, or finance and insurance industries.

VoIP migration remains sluggish in industries such as retail, agriculture, education, public administration, and hospitality. Organizations in these fields have remained more faithful to the incumbent telcos and MSOs, and are typically much slower to embrace VoIP.

Carrier Changes and US Business Size

VoIP migration appears to be accelerating among larger organizations, as more large companies moved to a VoIP provider during 4Q19 than 3Q19.

In both quarters, VoIP brands have attracted larger companies than MSO or telco brands.

VoIP providers also show a great disparity in the average size of their accounts. While brands such as Ymax (MagicJack), Google Grand Central, Vonage and 8×8 typically attract smaller companies, providers such as Paetec, Level 3 or Peerless serve larger companies more effectively as they sometimes provide out of footprint access for telcos and MSOs.

Key Takeaways

  • In 2H19, VoIP was a more attractive segment than MSOs, telcos or mobile carriers, for U.S. businesses who changed carriers while keeping their telephone numbers. The trend seemed to accelerate in 4Q19 compared to the third quarter.
  • VoIP attracted larger businesses then fixed brands in this study, although some of the carrier changes in this sample study included MSOs and telcos who use VoIP wholesale providers for out of footprint access.

For more information about this study, email ShareTracker today, or visit us at the upcoming Channel Partners conference in Las Vegas (booth 963).