European businesses are rapidly adopting hosted Internet protocol (IP) telephony and unified communications-as-a-service (UCaaS) solutions to become more agile and more easily adapt to ever-evolving market conditions. The COVID-19 pandemic further reinforced the need for flexibility in technology consumption in terms of capacity adjustments and delivery of services independent of user location, network, and devices.
Expanding availability of a broad array of UCaaS offerings (from simple, plug-and-play solutions for entrepreneurs to sophisticated, feature-rich offerings for organizations with complex environments and technology requirements) as well as a growing variety of services packaging and pricing will drive adoption across the entire customer spectrum.
UCaaS user and revenue growth will be slower than originally projected in 2020 and 2021 due to the economic downturn caused by the COVID-19 pandemic and ensuing workforce reductions and business closings. Strength will return in 2022 driven by ISDN services decommissioning, growing awareness of cloud services benefits, expanding variety of service offerings tailored for different types of customers, and the need for business agility in an increasingly global economy and accelerating pace of change due to rapid technology development.
The European market remains highly fragmented with Vodafone retaining a distinct lead ahead of all other providers. National incumbent carriers Telia, Telefonica, BT and KPN along with Vodafone comprise the top 5 European hosted IP telephony and UCaaS providers.
The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
Author: Elka Popova

Strategic Imperative
Strategic Imperative (continued)
Growth Environment
Growth Environment (continued)
Frost Radar™: European Hosted IP Telephony and UCaaS Market
Frost Radar™: Competitive Environment
Frost Radar™: Competitive Environment (continued)
Frost Radar™: Competitive Environment (continued)
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Frost Radar™: Benchmarking Future Growth Potential
Frost Radar™: Benchmarking Future Growth Potential
Frost Radar™: Benchmarking Future Growth Potential
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Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
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| Deliverable Type | Frost Radar |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Elka Popova |
| Industries | Telecom |
| WIP Number | K531-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9535-C3,9705-C1,9610,9656 |
Frost Radar™: European Hosted IP Telephony and UCaaS Market, 2020
A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines™
07-Aug-2020
Europe
Frost Radar
