Ofcom Communications Market Report sends out positive signal to VoIP resellers

By Simon Meredith | 15th August 2016

Figures reveal the burgeoning growth of hosted voice services as fixed lines continue to decline and businesses and home users consume more data

Romford, 15 August 2016 – DMSL, the leading distributor of broadband connectivity and hosted services,says that figures in the recently published annual Communications Market Report from Ofcom, send out positive signals for VoIP resellers and herald and the beginning of the end for fixed line communications.

It also points to the growth in data consumption as a clear sign that businesses and home users are starting to make more use of fast broadband connections to access services and content.

The Ofcom report showed that UK businesses made 17.9 billion minutes of outgoing VoIP calls in 2015, a 19.1 percent increase on 2014. Meanwhile, fixed voice service revenues fell by 2.4 percent in 2015, to £0.2bn and the total number of business fixed lines fell by 4.3 percent in 2015. At the end of last year, there were 7.6 million business fixed lines and ISDN channels. Average monthly retail revenue per business line fell by 2.7 percent in 2015.

DMSL believes these rates of growth and decline have gathered pace over the last few months. “Hosted VoIP sales are booming and we’d estimate that growth is now running at close to three percentage points, while there has been a corresponding decline in the use of fixed lines”, says John Carter Managing Director of DMSL. “We are seeing businesses embrace the technology and the beginning of the end for the fixed line and PBX hardware.”

But with well over seven million fixed business lines still in use, there is still huge potential for growth, Carter noted. “We are in a period of transition and the move from fixed line calls to VoIP is well underway. We expect to see a further acceleration over the rest of this year and into 2017.”

Revenues generated from VoIP usage were not fully captured by the Ofcom report, but Carter says they are only going in one direction. “Hosted VoIP revenues are on steep upward curve and delivering additional benefits to businesses. They have much more control and voice can be fully integrated with other digital and cloud-based services.”

The increased use of data will bring further opportunities, he predicts. The Ofcom report stated that increased uptake of superfast broadband saw the average amount of data consumed over broadband lines rise to 82GB, a 41percent increase from the 58GB per month recorded in June 2014. “As more businesses and homes get access to ultrafast services, the use of voice and other services will gain added momentum,” says Carter. “Ultrafast is the key to the future. It brings new possibilities for businesses and more potential for resellers and dealers.”

DMSL provides its partners with access to hosted voice, cloud services and connectivity services from focused vendors such as BT, Gamma, O2, Plusnet, Telefonica, Virgin Media Business and Vonage. It also offers marketing and lead-generation support to resellers, helping them to find new customers and build recurring revenues whilst retaining full ownership of the relationship. It also provides sales support in the field and 24/7 access to technical help, as well as automated, white-label billing.

Picture: John Carter, DMSL

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About DMSL
Established more than 15 years ago to meet the growing need for expertise in broadband and telecoms services, DMSL is a leading specialist distributor and aggregation partner for broadband, mobile and fixed voice and cloud services. It works with leading suppliers, such as BT, Gamma, O2, Plusnet, Telefonica, Virgin Media Business and Vonage, to bring resellers the best solutions the industry can provide.

DMSL offers a portfolio of business services and products, from single phone lines to multi-site hosted VoIP platforms. It offers bespoke telecoms solutions that are right for the needs of individual customers and partners, backed by unrivalled business and technical support.

For further information, please contact:
Vicky Thrower, Head of PR
Tel: 0844 561 6653 OR 01708 776005

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