Service providers expect IPX to be sold at a lower price

By HOT TELECOM
September 2013

IPX customers expect that IPX services will reduce the cost of international voice termination. Of those who identified service costs, 73% thought that voice termination costs would reduce in an IPX environment.

According to the “IPX – What Customers Think and Want” report released today by HOT TELECOM (www.hottelecom.com), the potential customers of IPX services in the future have a very clear view of their expectations for pricing – it will go down!

‘Compared to our previous reports on IPX, this latest detailed view of customer needs shows much more active planning for using IPX services in the future. Service providers are now logically thinking about how all this should pan out, and their thinking is that a pure IP network, shared between multiple service types and involving just one provider in a call between their customers and a distant network must be less expensive than the thousands of companies that currently are involved in international termination with many equipment types and profit centers.’ said Isabelle Paradis, President at HOT TELECOM. ‘While some of the respondents may not know how far the international networks have already moved towards an IP core, their logic of a vastly simplified structure being less expensive than today’s environment is hard to fault. We understand that the early IPX providers are pricing services in a premium way, which represents a real disconnect from their potential customer base.’

The research involved online surveys with over 70 communications service providers, backed up with a series of in-depth interviews with senior leaders in the different categories of service provider. From these discussions, HOT TELECOM concludes that there is a deeper understanding of what an IPX service is all about. When asked, without prompting, to describe the key commercial, technical and service capabilities of an IPX, most respondents identified the main attributes of an IPX as envisaged by the GSMA and i3Forum. The most common responses were that an IPX supported:

The interviews also identified a desire to make full use of these multi-service capabilities with increasing planning on deployments, so much so that 65% of the respondents plan to be using IPX services by the end of 2015.

‘The implication of these findings is that IPX providers need to be serious about getting a global multi-service offering into the market as soon as possible, as the retailers are starting to look at alternatives. One interesting result that IPX providers can take to heart – only 3% of respondents said it was important to have used the IPX Provider’s services before!’ said Isabelle.

Find out more about what customers really want from an IPX in our newly published report: http://www.hottelecom.com/ipx-customers.html

An Executive summary of this report can also be downloaded»

For more information on the IPX market or any other project in this segment, please contact Isabelle Paradis at:

paradis@hottelecoms.com or +1 514 270 1636