SMEs lead VoIP adoption stakes

Small to medium enterprises are leading the adoption of commercial voice over IP (VoIP) services, according to new research.

Customer survey results from VoIP provider Engin, along with feedback from the Australian Telecommunications Users Group (ATUG), demonstrate strong customer interest in the technology.

Based on feedback from nearly 2500 of its 19,000 customers, ATUG was surprised by the level of VoIP usage among businesses.

Business customers responding to the Engin survey said they have cut their phone bills by 75 percent, on average, with 82 percent of respondents reporting they were 'satisfied' or 'very satisfied' with the service.

About 41 percent of business users said overall service was better than their fixed-line service; businesses are making 10 percent more calls over VoIP than they did previously; and, perhaps most significant, 8.5 percent of business respondents have cancelled their fixed service to use VoIP exclusively.

Given the long-standing perception that VoIP is lower quality and less reliable than fixed services, these results are a vindication for VoIP advocates like Engin CEO Ilkka Tales.

"When we originally designed our product it was targeted towards consumers," Tales says. "Now, nearly half our customers are SMEs and business usage patterns have increased by around 10 percent. The fact that many had ditched their fixed lines surprised us, because it shows they feel comfortable enough [with VoIP] to do that."

Now 45 percent of the company's subscriber base are SMEs, and the last two financial quarters saw its customer numbers grow by 67 percent and 81 percent.

Revenue for the fiscal year ending 30 June 2005 was $21.66 million, up 31.7 percent over the previous year, while profitability surged 38.3 perecent over the year to $3.94 million.

The SME business, once a curious side business for a consumer-oriented business, has become a strong avenue for growth for the company.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

David Braue

Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?