The convergence of IT and telecommunication technology has paved the way for more effective, efficient and multidimensional mode of communication between the businesses. B2B telecommunication is a mode of communication between the businesses and the employees through voice mails, Voice over IP, data transfer and local calls.
Earlier, B2B telecommunication term was being used specifically to define the communication through telephone and computer networks. However, the scenario has been changed widely due to integration of telecommunication systems with advanced data transfer & data storage technologies.
The telecommunication service providers (TSPs) are also offering services such as cloud computing, data storage, and content delivery network (CDN), in order to meet the overall enterprise demand.
B2B Telecommunication Market: Drivers and Restraint
Growth in adoption of IP based services such as Voice over Internet Protocol (VoIP) and rising in demand for Unified Communications (UC) are the major drivers for growth the of B2B telecommunication market.
IP based communication service is used to exchange voice and data over the internet protocol networks. IP based communication offers several benefits to companies such as free voice calls to branch offices, cost efficient international & long distance voice calls and transmission of data & voice over single network.
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Unified communications (UC) is a set of real time & non-real time communication tools that enable the companies to exchange the information in different mediums. Unified communications is comprised of instant messaging, video conferencing, presence information, call control, email, SMS and Fax, which offers the consistent user experience across different devices and media types.
However, regulatory issues such as spectrum release & auction frameworks, data privacy & retention and tax & accounting rules are major factors that can affect negatively on growth of the B2B telecommunication market in future.
B2B Telecommunication market: Segmentation
B2B Telecommunication market can be segmented on the basis of service and technology.
On the basis of service, B2B Telecommunication market can be segmented in to voice services, data services and Broadband. Voice service facilitates enterprises to make and receive the calls within the network coverage area of service provider. Voice service can be further sub segmented in to long distance domestic calls, long distance international calls and domestic calls.
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Data service enabled the organisations to store and exchange the information that contains graphics, sounds, text and videos over internet network. Data service market can be further classified in to Data Centres, Data Administrations and Hosting Services. Data Centres are used by the companies to store, process and distribute the large amount of data. Currently, majority of organisations are outsourcing the data centre services from telecom service providers in order to minimise their infrastructure and operational cost.
On the basis of connectivity technologies, B2B Telecommunication market is classified into Ethernet, GSM, TD-SCDMA, TD-LTE and WLAN. WLAN can facilitate the internet access with speed up to 300Mbps, whereas LTE based systems are able to provide internet access with speed of up to 100Mbps.
Segmentation on basis of regions:
B2B Telecommunication Market is sub-segmented into 7 key regions- North America, Latin America, East Europe, West Europe, Asia-Pacific excluding Japan, pan and Middle East & Africa.
B2B Telecommunication Market: Region wise outlook
In Asia Pacific region, the IT companies are promoting the integrated solutions that are based on Service Oriented Architecture (SOA). The solution enable the companies to access & deliver information from different databases on a single device. Telecom companies has the scope to offer data management services in this area. Fixed Mobile Convergence is another area that has growth potential in Asia Pacific region.
North America is the dominant region of B2B telecommunication market in terms revenue generation, as the region has highest adoption rate of IP based communication services by the businesses.
Middle East & Africa is the fastest growing region in B2B telecommunication market due to investment by key telecom service providers to meet high demand of data services across the region.
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B2B Telecommunication Market: Key Players
The key players identified in the market are China Telecom Corporation (China), America Movil (Mexico), Telefonica S.A (Spain), SoftBank Group Corporation (Japan), Deutsche Telekom AG (Germany), The Nippon Telegraph and Telephone Corporation (Japan), AT&T Inc.(US), Vodafone Group plc (UK), Verizon Communications, Inc.(US), China Mobile Communications Corporation (China).