A study by research house World Wide Worx on the use of voice over Internet Protocol (VOIP) in SA has found that in contrast to the corporate environment, small and medium enterprises (SMEs) will shy away from the technology.
Seventy-eight percent of corporations surveyed expect to be using the technology by the end of the year. However, fewer than 2% of SMEs implemented VOIP in 2004 and this number is only expected to double in 2005. Over 1 000 SMEs were interviewed about their adoption and expectations of VOIP and least-cost routing (LCR).
Over 41% said they are making use of LCR, although usage is expected to drop slightly among SMEs in 2005. This also contrasts with the expected growth in the corporate environment.
"It comes down to education of the market. VOIP is an emerging technology, having been held back by telecommunications regulations until deregulation occurred on 1 February," says Arthur Goldstuck, MD of World Wide Worx.
"Unless its value is more clearly spelled out to SMEs now, the service providers in both VOIP and LCR will have to wait until 2006 for a boom in demand from small business."
"As with VOIP among corporates, LCR is still an emerging technology among SMEs," says telecoms analyst John Joslin, who co-authored the report with Goldstuck. "It requires education around options, applications, implementation strategy and cost-benefit issues."
"It is clear that, where the nature and benefits of LCR are known, there is significant enthusiasm for it," says Goldstuck.
"It is equally clear there is little understanding of the role played by VOIP in LCR or its benefits among SMEs. If providers want to sell into this key market, they will need to engage with potential clients from an educational point of view, much as early vendors in the Internet environment were required to do."
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