Cloud & OTT Growth Spur the SIP Trunking Market, Heavy Reading Finds

SIP trunking demand is growing due to the rise of cloud-based services and OTT Internet applications, says Heavy Reading IP Services Insider

Jul 19, 2012

CAMBRIDGE, Mass., July 19, 2012 /PRNewswire/ -- The rapid rise of cloud-based services and over-the-top (OTT) Internet applications is boosting demand for Session Initiation Protocol (SIP) trunking among network operators and large enterprises in key vertical markets, according to the latest report from Heavy Reading IP Services Insider (, a subscription research service from Heavy Reading (

OTT & Cloud Give a Boost to SIP Trunking examines the SIP trunking market, analyzing the most lucrative verticals of SIP trunking, and discussing drivers and challenges in the industry. It includes a comparative analysis of solutions available from 16 leading suppliers, examines the geographic landscape of the market and details trends that will likely occur in the industry over the next 18 to 24 months.

For a list of companies covered in this report,

"Service providers have come to embrace SIP trunking in the attitude of keeping friends close and enemies closer," says Denise Culver, research analyst with Heavy Reading IP Services Insider and author of the report. "Without question, SIP trunking undermines the traditional TDM-based service in which service providers have invested millions of dollars, as well as decades of time, installing, upgrading and selling legacy equipment to existing customers."

Over the next two years, the introduction of integrated fulfillment management for SIP trunking will become a mandatory part of service providers' overall solutions, as competition builds for cloud communications, Culver says. "SIP trunking will be driven – especially in the U.S. – by regulatory mandates," she continues. "Now that the FCC's direction on VoIP is unmistakably clear, carriers that have held off migrating interconnects to IP will be forced to initiate projects or risk losing market share to those that can offer the service more competitively."

Key findings of OTT & Cloud Give a Boost to SIP Trunking include the following:

  • The flexibility and cost savings made possible with SIP trunking have forced incumbents to adopt SIP, even though it often cannibalizes their existing services.
  • The advantages of SIP trunking extend across all business verticals, with each one realizing different long-term benefits of adopting the service.
  • SIP trunking lowers telephony costs, as enterprises replace traditional phone lines and legacy PBXs with newer IP technology.
  • Service providers must educate their customers about the inherent reliability of IP networks and service options to increase SIP trunking usage.
  • The ubiquitous, high-quality IP connectivity in the U.S. will drive continued SIP adoption.

OTT & Cloud Give a Boost to SIP Trunking is available as part of an annual subscription (six issues) to Heavy Reading IP Services Insider, priced at $1,595. Individual reports are available for $900.

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David Williams
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Heavy Reading

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Marketing Director, Light Reading Communications Network

About Heavy Reading ( Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the $4 trillion global telecom industry. As a telecom research arm of the Light Reading Communications Network (, Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

About Light Reading Communications Network ( The Light Reading Communications Network combines the most trusted telecom research brands with award-winning online communities and a rich events portfolio to deliver the only integrated business information platform serving the global communications industry. With the power of this platform, leaders who build, deploy, finance, and regulate next-generation telecom networks are able to make more informed decisions on emerging market and service opportunities. Light Reading Communications Network is a division of UBM TechWeb (, the global leader in technology media and business information.

SOURCE Heavy Reading