SMB/Branch Office Bundle Could be Worth Billions to Carriers

In-Stat: The Small Business (SMB)/ Branch Office Bundle, a converged network solution, may be worth billions of dollars in recurring revenue to telecom carriers in a few years During 2005 shows strong demand for a small office network service bundle, with over 80% of small businesses or branch offices favoring bundles from a single supplier. The SMB/Branch Office Bundle combines: Business Gateway multi-service CPE device, integrated transport facilities, hosted-voice communication, mobile voice/data services, managed professional services, and IMS-based SIP services and applications. A successful rollout of the service bundle must overcome numerous hurdles. For example, network issues such as deployment of IMS network elements, as well as the integration of back office systems must be addressed.

• Multiple versions of the SMB/Branch Office Bundle may be required to address small businesses, larger-capacity mid-size offices, enterprise branch offices and possibly vertical industries.

• Monthly recurring charges for an average 10-employee office that includes a Business Gateway device, integrated T1 access, IP Centrex, mobile voice (for 5 employees) and managed services is estimated to be $1700.

• Carrier implementation of the SMB/Branch Office Bundle will require a commitment to a changing business model, creativity, and a willingness to take risks.

The SMB/Branch Office Service Bundle Enhanced by IMS Publ 20060307