1. Rich
Media
Conferencing
2004
Audio, Video, and Web
Conferencing Services
3

2. Rich Media Conferencing – 2004
Volume 3, Audio, Video, & Web
Conferencing Services
October 2004
This Copy Has Been Licensed to Only Your Organization
The following acts are strictly prohibited:
Transmittal to another organization outside you immediate organization (i.e.
partners, resellers, etc.) in any media format
Posting on a web site which is accessible to others outside your immediate
organization
Reproduction for sale
This publication is protected by United States copyright laws and international treaties.
Unauthorized distribution or reproduction of this publication, or any portion of it, may result
in severe civil and criminal penalties, and will be prosecuted to the maximum extent
necessary to protect the rights of the publisher.
Publication No. RE-RMC04-V3

3. About the Authors
Andrew W. Davis is Managing Partner at the Wainhouse Research, LLC, a Brookline, MA-based
firm providing market research, business planning, and marketing services. He has more than ten
years experience as a successful technology consultant and industry analyst. Prior to independent
consulting, Andrew held senior marketing positions with several large and small high technology
companies. He has published over 200 articles and columns on multimedia communications, image
and signal processing, videoconferencing, and corporate strategies in multiple trade journals. and
has taught seminars on multimedia communications, videoconferencing, and streaming media
technologies. Mr. Davis holds B.S. and M.S. degrees in engineering from Cornell University and a
Masters of Business Administration from Harvard University. He can be reached at
andrewwd@wainhouse.com.
Marc F. Beattie is a Senior Analyst and Partner at Wainhouse Research, LLC where he heads the
CSP practice. He has authored public and private reports on product strategies, distribution
structures, emerging technologies and industry applications. Marc is the principle author of CSP
SpotCheck, and co-authors Wainhouse Research’s three volume Rich Media Conferencing series
annually. He is a featured speaker and moderator at industry conferences and private company
events - specializing on the future impact of current technology developments. Marc regularly
consults with end users, established vendors, emerging companies, and the financial community. He
is a member of Gerson Lehrman Group's The Councils of Advisors and Vista Research's Society of
Industry Leaders through which he advises worldwide financial clients on technology companies and
trends. Prior to joining Wainhouse Research Marc was an early member of PictureTel and Polycom -
holding positions in product management, business development and sales management - and spent
13 years working within the industry. He has been an independent analyst and consultant since
1998. He can be reached at mbeattie@wainhouse.com.
Andrew H. Nilssen is a Senior Analyst and Partner at Wainhouse Research, LLC. Andy has over 20
years of experience in bringing high-technology products to market. At Wainhouse Research, he co-
authors many of the firm’s market research reports and is a consultant to rich media conferencing
vendors, network infrastructure vendors, end users, government agencies, and venture capitalists.
Prior to Wainhouse Research, Andy was Director of Marketing at PictureTel where he identified
strategies and partners to expand business, and was responsible for all market research including
end-user, competitive, and market sizing. Earlier, Andy managed the planning and launching of
PictureTel's Venue and Concorde group systems and authored the original business plan for
SwiftSite. Andy was also Vice President of Marketing at Visual Technology, a maker of IP-based
network terminals, and a Product Line Manager at Sun Microsystems. Andy earned his MBA and
BSEE degrees from the University of New Hampshire and holds two ease-of-use related patents. He
can be reached at andyn@wainhouse.com
COPYRIGHT NOTICE
Copyright ©2004 by Wainhouse Research, LLC. All rights, including that of translation into other languages are specifically
reserved. No part of this publication may be reproduced in any form, stored in a retrieval system, or transmitted by any method or
means, electrical, mechanical, photographic, or otherwise, without the express written permission of Wainhouse Research, 112
Sumner Road, Brookline, MA 02445 (Tel 617-975-0297) www.wainhouse.com.
NOTE: The material presented in this report is based on both primary and secondary market data coupled with our professional
interpretation of the facts. We believe that the basic information and recommendations presented in this study provide a basis for
sound business decisions, but no warranty as to completeness or accuracy is implied. All market estimates and forecasts are
those of the authors, except as noted. We welcome your comments on this report.

4. Rich Media Conferencing 2004
A comprehensive series of market research reports designed to help you keep abreast
of the rapidly changing technologies, offerings, and vendors
in the audio, web, and video conferencing and collaboration markets.
The rich media conferencing and collaboration The Rich Media Conferencing series consists
market is undergoing important changes. Audio of three separate reports of interest to vendors
and video conferences are being deployed over and end users alike:
IP networks, though network QoS, bandwidth,
and infrastructure bottlenecks remain a concern. Volume 1: Audio, Video, and Web
Web conferencing and Instant Messaging, Conferencing Infrastructure Products -
combined with the enormous power of Presence Market and technology overview of
and Availability Management, have come out of audio, video, and web conferencing
nowhere to gain massive popularity and support servers, MCUs, gateways, & gatekeepers
from important enterprise software vendors who complete with summaries of major
are looking to morph many collaboration vendors and their product lines, and a
functions into features of higher level detailed 5-year forecast.
applications rather than see them exist as stand-
alone desktop applications. Videoconferencing Volume 2: Videconferencing Clients -
Video and Web conferencing clients
systems are evolving with new standards
market and technology overview,
promising higher quality video, security, and
complete with summaries of major
data conferencing capabilities. Demand for
vendors and their product lines, and a
video- and collaboration-centric hosting services detailed 5-year forecast.
is building as enterprises of all types look for
ways to improve communications and reduce Volume 3: Audio, Video, & Web
travel expenses. Conferencing Services - Conference
services market and technology
Wainhouse Research’s Rich Media overview, complete with summaries of
Conferencing series will help you track the major conferencing service providers
market, understand your competition, re-vamp (CSPs) and their service offerings, and a
your marketing messages and distribution detailed 5-year forecast.
strategies, and maximize your return on
investment. Our goal is to broaden your The RMC report series is available by full series
understanding of the technology and market subscription or individual reports; in either
trends and to provide an independent insight hardcopy or electronically via Adobe Acrobat
into the future. pdf.
Segment Focus Reports
Wainhouse Research Segment Focus reports are published on an ad-hoc basis. They are intended to
provide in-depth coverage of markets, technologies, or product categories of special interest to the rich
media conferencing community. Some reports include five-year forecasts. See www.wainhouse.com for
a listing of available reports.

5. Thinkofit
3144 10th Ave. South
Minneapolis, MN 55407
Phone: 612-824-2001
Fax: 612-573-6667
Web: www.thinkofit.com
Rich Media Conferencing 2004 Order Form
Please fax or mail to Thinkofit (address & fax number above) or order by phone at 612-824-2001.
RMC 2004 Option I: Full Series Subscription
• 1 printed copy of each volume: Vol 1, Vol 2, & Vol 3
• Electronic copy of each volume with limited organizational use license (Acrobat .pdf file)
Invoice $11,995 USD + shipping on receipt of first report; ($9,995 for repeat subscribers)
RMC 2004 Option II: Individual Reports - please indicate number of individual report copies desired:
___ paper copies or electronic option Vol 1: Multimedia Network Infrastructure Products
___ paper copies or electronic option Vol 2: Videoconferencing Client Endpoints
___ paper copies or electronic option Vol 3: Audio, Video, and Web Conferencing Services
Prices: $3,495 USD first paper copy of each report, additional paper copies $400 USD
Electronic option: $4,995 USD one paper copy of report plus electronic copy with limited
organizational use license (Adobe Acrobat .pdf file); Shipping & handling charges are additional.
Payment Options:
Company Purchase Order: PO # _______________________________________________
Credit Card Order: Visa MasterCard American Express
Credit Card # ___________________________________ Expiration Date: ____/_____
Name on Card: _________________________________________________________
Marketing Contact Billing Address (If different)
Contact Name Contact Name
Company Company
Address Line 1 Address Line 1
Address Line 2 Address Line 2
City, State, Zip or Postal Code City, State, Zip or Postal Code
Contact Phone Number Email Contact Phone Number Email

6. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Table of Contents
CHAPTER 1 – EXECUTIVE SUMMARY......................................................................................... 9
Market Overview........................................................................................................................... 9
Market Segments ......................................................................................................................... 9
Methodology ............................................................................................................................... 11
Major Trends .............................................................................................................................. 12
Forecast Summary ..................................................................................................................... 13
Providers Covered in This Report .............................................................................................. 14
CHAPTER 2 – THE YEAR (2003) IN REVIEW ............................................................................. 15
The Top five................................................................................................................................ 15
The Conferencing Industry in General ....................................................................................... 16
Mergers, Acquisitions, Exits, and Other Business Deals ........................................................... 17
Pure Technology Developments ................................................................................................ 17
Audio, Video, and Web Conferencing Infrastructure Products .................................................. 18
Endpoints for Group and Personal Videoconferencing .............................................................. 18
Audio, Video, and Web Conferencing Services ......................................................................... 19
CHAPTER 3 – MARKET SEGMENTS & TECHNOLOGIES ........................................................ 20
Current Market Segments .......................................................................................................... 21
Recent CSP Trends & Events .................................................................................................... 24
The Rich Media Conferencing Food Chain ................................................................................ 27
Some Definitions ........................................................................................................................ 28
Technology ................................................................................................................................. 30
CHAPTER 4 – VENDOR ANALYSIS ............................................................................................ 45
ACT Teleconferencing................................................................................................................ 45
Arkadin SA.................................................................................................................................. 48
AT&T Teleconference Services.................................................................................................. 50
Bell Canada (includes ACCUTEL) ............................................................................................. 53
British Telecom Conferencing .................................................................................................... 56
Centra Software.......................................................................................................................... 58
Citizens Conferencing ................................................................................................................ 61
Conference Plus ......................................................................................................................... 63
Deutsche Telekom AG ............................................................................................................... 65
ECI Conferencing Services ........................................................................................................ 67
Enunciate Conferencing ............................................................................................................. 69
France Telecom.......................................................................................................................... 71
Genesys Conferencing............................................................................................................... 73
Glance Networks, Inc. ................................................................................................................ 76
Global Crossing Conferencing ...................................................................................................78
GlowPoint ................................................................................................................................... 81
InterCall ...................................................................................................................................... 83
MCI Conferencing....................................................................................................................... 86
MeetingZone............................................................................................................................... 88
Microsoft ..................................................................................................................................... 90
MVC............................................................................................................................................ 94
NTT BizLink, Inc. ........................................................................................................................ 97
Premiere Conferencing............................................................................................................... 99
Raindance Communications .................................................................................................... 102
SingTel ..................................................................................................................................... 106
© 2004 Wainhouse Research, LLC Page 5

7. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
SNT Conferencing Services (to be re-integrated to KPN Q4 2004).........................................107
Sprint ........................................................................................................................................109
TeliaSonera ..............................................................................................................................112
Telstra Conferencing ................................................................................................................114
V-SPAN ....................................................................................................................................116
WebEx Communications ..........................................................................................................121
CHAPTER 5 – INDUSTRY FORECAST .....................................................................................126
Market Overview.......................................................................................................................127
Forecast Assumptions ..............................................................................................................128
Definitions.................................................................................................................................130
Methodology .............................................................................................................................130
The North American Market .....................................................................................................131
Europe ......................................................................................................................................138
Asia Pacific ...............................................................................................................................145
Worldwide.................................................................................................................................152
APPENDIX A – SURVEY RESULTS ..........................................................................................154
APPENDIX B – COMPLETE LISTING OF SERVICE PROVIDERS & MATRIX OF SERVICES
.....................................................................................................................................................160
List of Figures
Figure 1: CSP Market Segmentation ............................................................................................. 10
Figure 2: CASP Segmentation By Type......................................................................................... 11
Figure 3: CASP Segmentation By Size.......................................................................................... 11
Figure 4: Unified Conferencing ...................................................................................................... 12
Figure 5: Worldwide forecast of conferencing service revenues ................................................... 13
Figure 6: CSP Market Segmentation ............................................................................................. 21
Figure 7: Three implementations of conferencing services ........................................................... 22
Figure 8: Channel Structure ........................................................................................................... 23
Figure 9: CASP Segmentation By Type......................................................................................... 23
Figure 10: CASP Segmentation By Size........................................................................................ 24
Figure 11: The Role of Presence ................................................................................................... 25
Figure 12: Unified Conferencing .................................................................................................... 26
Figure 13: Match the Media to the Message.................................................................................. 27
Figure 14: Three tools for network quality of service ..................................................................... 31
Figure 15: Network address translation .........................................................................................32
Figure 16: Web conferencing and PSTN architecture ................................................................... 34
Figure 17: Functions of a Gateway ................................................................................................ 36
Figure 18: IP Media Server Configuration with Conferencing........................................................ 38
Figure 19: Components of an IP Media Server Platform ............................................................... 39
Figure 20: IP Media / TDM Hybrid Deployment ............................................................................ 40
Figure 21: ITU-T Standards for Multipoint Conferencing ............................................................... 42
Figure 22: North America Revenue Forecast by Segment ..........................................................131
Figure 23: North America Revenue Y2003 ..................................................................................132
Figure 24: North America Revenue Y2008 ..................................................................................132
Figure 25: North American CSP Total Revenue ..........................................................................133
Figure 26: North American Audio Minutes Forecast....................................................................134
Figure 27: North American Audio ASP Per Minute Forecast.......................................................134
Figure 28: North American Audio Revenue Forecast ..................................................................135
Figure 29: North American Web Conferencing Revenue Forecast .............................................136
Page 6 © 2004 Wainhouse Research, LLC

8. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Figure 30: North American Video Bridging Revenue Forecast....................................................137
Figure 31: European Revenue Forecast by Segment ................................................................. 138
Figure 32: Europe Revenue Y2003 by Segment ......................................................................... 139
Figure 33: Europe Revenue Y2008 by Segment ......................................................................... 139
Figure 34: European CSP Total Revenue ................................................................................... 140
Figure 35: European Audio Minutes Forecast ............................................................................. 141
Figure 36: European Audio ASP Per Minute Forecast ................................................................ 141
Figure 37: European Audio Revenue Forecast ........................................................................... 142
Figure 38: European Web Conferencing Forecast ...................................................................... 143
Figure 39: European Video Bridging Revenue Forecast ............................................................. 144
Figure 40: APAC Revenue Forecast by Segment ....................................................................... 145
Figure 41: APAC Revenue Y2003 ............................................................................................... 146
Figure 42: APAC Revenue Y2008 ............................................................................................... 146
Figure 43: APAC Total CSP Revenue Forecast .......................................................................... 147
Figure 44: APAC Audio Minutes Forecast ................................................................................... 148
Figure 45: APAC Audio ASP Per Minute Forecast ...................................................................... 148
Figure 46: APAC Audio Revenue Forecast ................................................................................. 149
Figure 47: APAC Web Conferencing Revenue Forecast............................................................. 150
Figure 48: APAC Video Bridging Revenue Forecast ................................................................... 151
Figure 49: Worldwide Revenue Forecast by Segment ................................................................ 152
Figure 50: Worldwide Audio Revenue Forecast .......................................................................... 153
Figure 51: Worldwide Revenue Forecast by Geography............................................................. 153
Figure 52: Size/type of respondent's enterprise .......................................................................... 155
Figure 53: Type of company ........................................................................................................ 155
Figure 54: Geographic distribution of respondents...................................................................... 156
Figure 55: Service plans today .................................................................................................... 156
Figure 56: Service plans in 12 months......................................................................................... 157
Figure 57: Top two service provider selection criteria ................................................................. 157
Figure 58: Top reasons for using an outside CSP....................................................................... 158
Figure 59: Main reasons for NOT using a CSP ........................................................................... 158
Figure 60: Purchase decision makers for audio, video, and web conferencing .......................... 159
Figure 61: Purchase plans – 2005 vs. 2004 ................................................................................ 159
List of Tables
Table 1: North America Market Forecast ..................................................................................... 131
Table 2: North America Audio Conferencing Forecast ................................................................ 133
Table 3: North American Web Conferencing Forecast ................................................................ 136
Table 4: North American Video Bridging Forecast ......................................................................137
Table 5: European Market Forecast ............................................................................................ 138
Table 6: European Audio Forecast .............................................................................................. 140
Table 7: European Web Conferencing Forecast ......................................................................... 143
Table 8: European Video Bridging Forecast................................................................................ 144
Table 9: APAC Market Forecast ..................................................................................................145
Table 10: APAC Audio Forecast ..................................................................................................147
Table 11: APAC Web Conferencing Forecast ............................................................................. 150
Table 12: APAC Video Bridging Revenue Forecast .................................................................... 151
Table 13: Worldwide Forecast by Market Segment..................................................................... 152
Table 14: Worldwide Forecast by Geography.............................................................................. 152
© 2004 Wainhouse Research, LLC Page 7

9. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
This page intentionally left blank
Page 8 © 2004 Wainhouse Research, LLC

10. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Chapter 1 – Executive Summary
This report presents a comprehensive study of the audio, web, and video bridging services
market. Our review includes an individual treatment of Conferencing Service Providers (CSPs)
and their related markets in North America, Europe, and Asia Pacific. Included in this report is our
analysis of the current state of the market, a review of the underlying technologies, background
and analysis of 32 vendors, current market sizing, our 5-year forecast by service type (including
revenue, volume, and average sales prices), results of an online survey from over 500
respondents, and a list of all of the providers in our database with their major services. This
report places the current market conditions and emerging trends in context and provides opinions
and recommendations grounded in a comprehensive view of the internal and external forces
driving conferencing services.
Market Overview
The past year has seen continued strength in the market for hosted conferencing solutions.
Attended audio minutes, attended revenue, and web conferencing each grew more than 30%.
However, multiple conditions within the market and conditions outside are beginning to challenge
the traditional role of CSPs and their individual growth.
Within the Market
The market demand for audio conferencing is extraordinary and has remained strong for multiple
years. While attended audio has declined, total audio minutes – driven by unattended audio – has
increased year-over-year. Web conferencing usage continues to climb with many CSPs report a
doubling of usage in the last year. Recent quarterly data indicates that web conferencing
revenue in North America now accounts for over 20% of total CSP revenue. European usage of
web conferencing kicked in during the first half of 2004 and we expect APAC to gain a foothold in
2005. Through VPN PoPs (point-of-presence) and centralized, low cost IP media servers, even
the smallest CSPs can now have a local market presence – and an increasing number do. It has
never been easier to claim local service in 15-25 countries.
Outside the Market
Many factors outside of the immediate conferencing arena,are having a profound impact on
conferencing services. CSPs are increasingly being squeezed by users deploying VoIP and their
own IP-based backhaul networks. The last piece to fall in place is public packet switched voice
networks. Interestingly, many within the industry acknowledge that the ROI for VoIP has run its
course and end user benefits will remain soft until new features and services are offered that
either compliment the way users work, make communication easier, and/or reduce costs.
Enhanced conferencing services offered on top of VoIP offer all these benefits. At the same time,
telecom equipment providers with a VoIP strategy are pushing clients to buy and run their own
Customer Premisis Equipment (CPE). Alcatel bought eDial, Avaya bought Spectel, Cisco bought
Latitude, and we believe that every major telecom equipment vendor will need to own a
conferencing and collaboration asset. There are more trends to indicate that, in the end, a hosted
or managed service wins the day – allowing a big role for CSPs – but these are big companies
with a lot of marketing power to change minds.
Market Segments
The conferencing services market has evolved over the past two years, responding to an
industry-wide move to IP on the part of many customers, to the changing role of voice, video, and
web media capabilities in the service provider mix, the emergence of converged solutions, and
new customer demands to remove or hide the complexity of increasingly sophisticated unified
© 2004 Wainhouse Research, LLC Page 9

11. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
solutions. We believe the following chart represents the current market segmentation that is
applicable to most service providers.
Conferencing
Service Providers
Conferencing
Managed Video Network
Application
Service Provider Service Provider
Service Provider
Figure 1: CSP Market Segmentation
Conferencing application service providers (CASP) are companies that provide hosted services
for audio, video, and web conferences. Many of these companies were known as bridging
service providers in the past, since they focused on multipoint audio and video services.
Customers traditionally paid by the minute for CASP services, though pricing models are quickly
evolving for IP-based services.
Managed service providers (MSPs) traditionally manage, operate, and maintain equipment that is
physically located on the customer premises or a third party collocation facility and may or may
not be logically located behind the customer’s firewall. Sometimes these services are provided
by remote personnel, and sometimes by dedicated MSP personnel located at the customer site.
The equipment itself can be owned by the customer, or made available on a lease-back program.
The managed services model is growing in popularity, with some equipment resellers and some
CASPs deciding to get into this end of the CSP business.
Video Network Service Providers (VNSPs) enable rich media communications by providing IP
network services optimized for or dedicated to videoconferencing traffic. Several companies
specialize in this business, but the larger VNSPs are providing MPLS-based IP networks that
handle voice, video, and data on a single network with quality of service (QoS) built in to support
the needs of voice and video. For many of these companies, attempting to separate out video
revenues from overall network revenues is an exercise of questionable value.
Some service providers today are attempting to provide services in all three sectors, while others
are content to remain in one segment only.
This report focuses on the CASP segment of the market.
Page 10 © 2004 Wainhouse Research, LLC

12. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
CASP Segmentation
Wainhouse Research depicts the CSP industry as consisting of three tiers by type and four tiers
of players by size.
Telcos Independent Video & Web
Audio CSPs Application Service Providers
AT&T, BT, DT, ACT, Arkadin, Genesys, Centra, GlowPoint, Microsoft,
FT, MCI, NTT, InterCall, Netspoke, WebDialogs, WebEx, V-SPAN, etc.
Telstra, etc. Premiere, etc.
Figure 2: CASP Segmentation By Type
Telcos are typically large companies, including the well known carriers such as AT&T, Bell
Canada, British Telecom, France Telecom, MCI, NTT, and Telstra. While these companies often
have large market shares in their local markets, conferencing itself represents a very small piece
of their business. In general, these companies own their networks, have a business unit that is
an original audio service provider and resell web conferencing services.
Independent audio CSPs generally comprises a group of 5-10 players who garner a significant
share of their revenue from audio conferencing services and resell web conferencing.
Video and web application service providers consist of a small group of providers who primarily
sell video bridging or web conferencing as an original service provider. These services can be
sold directly or through audio CSPs – either Telco’s or independents, however, most services are
sold directly.
Tier 1 Tier 2 Tier 3 Tier 4
> $250M $100M - $250M $10M - $100M < $10M
AT&T, MCI InterCall, Premiere, ACT, BT, FT, etc. An increasingly
Genesys, WebEx, small field of players
etc that have grown or
been acquired
Figure 3: CASP Segmentation By Size
The largest group of CSPs are in Tier 3, however an increasing number are in Tier 2. Tier 4 often
includes start ups within the first three years of business or older companies that focus in a niche
market. Aggressive smaller companies often move up into Tier 3 by their fourth year or become
acquired by larger companies (Connect-US, ConferenceCall.com, RCI, etc). Very few companies
break into Tier 1, however InterCall, Premiere, and WebEx are each on revenue run rates to
accomplish this either in 2004 or 2005.
Methodology
Wainhouse Research monitors the entire rich media conferencing market through its consulting,
seminars and WR Summits, SpotCheck quarterly industry reports, and user activities, as well as
by maintaining continuous contacts with the vendor and end user communities. Part of the
research in support of this report included an on-line survey, details of which are included in an
appendix to this report. In order to assess the current state of the market and to ground the
forecast figures of this report in hard reality, we also interviewed and collected data from 35
suppliers.
© 2004 Wainhouse Research, LLC Page 11

13. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Major Trends
Our forecast and supplier reviews note several trends that are shaping the future of the rich
media conferencing industry, and their impact on the market for conferencing services:
The dramatic entry of Microsoft into the conferencing and collaboration market has
galvanized the CSP industry in several ways. Microsoft is promoting the future
integration between Live Communication Server (LCS) and Live Meeting, enabling a
smooth continuum between server and services in the not-too-distant future; and LCS
brings presence and presence management to the forefront of the conferencing industry,
opening new opportunities for end users and service providers alike.
Presence, whether Microsoft-based or based on another vendor’s product, will have a
profound effect on the conferencing industry as a whole, and service providers along with
it.
The past year has seen significant activity on the part of large enterprise software and
telephony equipment vendors such as Avaya, Alcatel, Cisco, IBM, Nortel and Oracle.
These vendors have captured the attention of the enterprise IT buyer, and they are now
talking about “unified conferencing,” a concept that is not fully flushed out. However, it is
clear that the big picture involves a comprehensive portfolio of capabilities that cross both
synchronous (real-time) and asynchronous (non-real-time) domains. As these systems
are deployed, Wainhouse Research expects that CPE, CSP, and blended solutions will
all co-exist in order to satisfy a wide range of user needs.
Asynchronous Collaboration Real-Time Collaboration
File Unified IP RMC Business
E-Rooms
Exchange Messaging Telephony Portal Processes
Communication Devices
Infrastructure Services
Media Servers, Rights Management, Directories, Presence
Figure 4: Unified Conferencing
Most CSPs still have audio/web integration on their development plans. Web
conferencing is the fastest growing segment of the conferencing services industry,
although it is still a small slice of the revenue pie (with the exception of Microsoft, WebEx,
and a few smaller players that focus on web conferencing), and most services today
require a customer to run two simultaneous conferences – one for audio and one for web.
Unattended audio calls now represent approximately 90% of the volume and 75% of the
revenues for audio conferencing service providers worldwide. The massive shift from
attended to unattended is largely over, but has wrecked havoc on the industry. With its
lower costs and largely undifferentiated service, unattended audio has fed price reduction
frenzy in the industry. Because of this market shift, we believe there is a trend within the
audio conferencing service providers to simplify their product offerings on the lower,
unattended level, but to introduce high touch, high priced fully attended minutes at the top
end to service customer needs for special events.
Page 12 © 2004 Wainhouse Research, LLC

14. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Industry consolidation will continue as providers strive to reach critical mass, benefit from
economies of scale, enter niche markets to flee price competiiton, and gain new
customers. At the same time a continuing stream of new, small-to-medium-sized service
providers are entering the market by capitalizing on customer disenchantment with the
larger, established vendors or offering new low-priced services often tied to IP
infrastructure or new technologies for bridging hardware, or coupled with increased
customer service and hand-holding. This has become possible because the barriers to
entering the automated audio conferencing business have never been lower on a
technology scale.
Forecast Summary
We state here for clarity that our forecasts are for original service revenues and volumes. We
make no attempt to measure the size of the agent or reseller markups or margins.
Total Market
Our overall CSP forecast results in the industry revenues growing from $2.9 billion in 2003 to $4.3
billion in 2008, producing a compounded annual growth rate (CAGR) of about 8%. The unit
growth (minutes) and average selling price (ASP per minute) details behind this revenue forecast,
as well as revenue by major geography, can be found in Chapter 5.
W orldw ide Forecast - By Segment ($M)
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2003 2004 2005 2006 2007 2008
Total Audio Revenue Web Video Bridging
Figure 5: Worldwide forecast of conferencing service revenues
© 2004 Wainhouse Research, LLC Page 13

15. Rich Media Conferencing 2004 Volume 3: Audio, Video, and Web Conferencing Services
Providers Covered in This Report
Wainhouse Research has done extensive research into the conferencing services market. The
following companies are reviewed in this report.
ACT MCI
AT&T Teleconferencing MeetingZone
Arakadin Microsoft
Bell Canada Conferencing MVC
Centra Netspoke
Citizens Conferencing NTT
ConferencePlus Premiere
Deutsche Telekom Raindance
ECI Singtel
Enunciate SNT (KPN)
France Telecom Sprint
Genesys TeliaSonera
Glance Telstra
Global Crossing V-SPAN
GlowPoint WebDialogs
InterCall WebEx
Page 14 © 2004 Wainhouse Research, LLC