Hosted IP telephony solutions 'are seeing rapid growth'

The European market for hosted IP telephony solutions is in a phase of rapid growth, according to a report from Frost & Sullivan.

In European Hosted IP Telephony and Unified Communications Services Market, the analyst reports that customer awareness about modern, advanced calling features is helping to drive uptake of the technology.

As a result, the currently fragmented market is maturing, with challenges such as clarifying the industry's delivery channel on the agenda for the coming years.

Dorota Oviedo, industry analyst at Frost & Sullivan, says: "With the economy rebounding, companies will continue using hosted IP telephony services.

"At the same time, they are also expected to complement them with new communications and collaboration applications."

For the full year 2010, the analyst anticipates revenues of just below €1 billion (£875 million) for hosted IP telephony solutions across the whole of Europe.

The Frost & Sullivan Unified Communications Growth Partnership Service aims to identify industry trends, allowing organisations to capitalise on openings in the market as they develop.