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Market Snapshot: Voice as a Lifeline and the Transformation of Home

A Parks Associates Snapshot Developed for DECT Forum All rights reserved | www.parksassociates.com | © Parks Associates relationships. the universal needfor providing communicationandsocialconnection, alifeline for life, and everyday work, technologiesnew accelerateofdirectphysical adoption.Deprived presence, householdsfind voice callsaddress how home telephony istransforming inways thatprovide technologies renewed even while validationoflegacy Recognizing whileothersmay sometrends snapshotexplores signal are lastingchange, temporary thismarket providers. from-home lifestyles has drivendramaticupticksinvoice callinginallitsforms, according to theworld’s leading numbers. The combinationofshelter-in-place, work-from-home, school-from-home, hyphenated- andothernew pandemic,COVID-19 peopleacross theglobeare reaching outviavoice callsfrom home inunprecedented “It’s goodto hearyour voice” expresses gratitude for whenit’s humanconnection the neededmost.During Calling Makes AComeback Voice asaLifeline andthe Transformation ofHome Telephony Telecommunications Providers Home Report Telephony Surge Since COVID Lockdowns, March 2020 the number of calls on its network sincemid-March. the numberofcallsonits network an averagereported ofmore than50millionmobile callsperday. Telus indicates anincrease of45%in a200%increaseCanada: experienced Bell invoiceconference callsanda250%rise calls. Rogers services whilein trafficonitswireless andfiber broadband Wi-Finormal callsdoubledtheirvolume. itsweekday trafficincreased approximatelyreports March, 30%in and a22%increase Verizon experienced US: indicates voice andvideocallshave pandemic. theCOVID-19 more AT&T during thantripled mobilevoice trafficup 35%and Portugal: Alticereports fixed telephony up60%. and responsibly.” alsothreatened suchasNetflix. orblocknon-supplyrelated to It restrict services thatitmadeapublic appealto itscustomersnetworks to “use sensibly thetelecommunications networks Switzerland: strainonitsmobile(volume suchserious up300%)andfixed Swisscom reported broadband to useoflandlinesretained ashift driving by 46%ofAustrian households. Austria: An81%increase thepandemicstressed inmobilecallsduring thelimitationsofmobilenetworks, andNew regularly seenatpeaktimessuchasChristmas Year. in mid-March. increasesThe company inmobiledatatrafficacross alsoreports Europe similar tothose France: OrangeGroup saw mobilevoice trafficdoublein wasimposed Francesinceanationallockdown and durationoflandlinecallsincreased dueto many sharply peoplehaving to from work home. where March, possibleandlower In thedemandsonmobilenetworks. Virgin thenumber reported bodyfor The UKregulatory telecommunications,UK: OFCOM, issuedadviceto uselandlinesor Wi-Fi calls More callsare beingmadeto landlinestoday for thefirsttimein13 years. Telekom—report asignificant increase andalonger average the durationofcallsduring pandemic.COVID Germany: Allthree operators majortelecommunications network ­­— Telefónica, Vodafone andDeutsche

Voice as a Lifeline and the Transformation of Home Telephony

© Parks Associates © Parks reported another 22% reported another of US 2020, 30% of US May of As households broadband worker, reported one remote and working remotely adult was in the household. With closure of physicians offices, offices, of physicians closure Needs – With Healthcare services telehealth of use nearly tripled betweenUS the in April 2019 and May 2020. with local contactsAlmost half of telehealth were services US telehealth by phone physicians. specifically the dominant calls remain as phone YOY 170% increased modality. telehealth © Parks Associates © Parks A UK call center for personal emergency alert for A UK call center serving (PERS) systems the elderly has seen a 14% increase in emergency calls since the COVID-19increase crisis began. with an In and specific when associated most reliable the US, 911 emergency calls are used. location are established physical be made had to a hospital emergency calls directly to room When the pandemic began in Germany, mobile call center. or otherwise a a nationwide from through be routed • • • Elders and the vulnerable at high risk both COVID-19 – Elders to and social and the vulnerable Elder care critical and access to services. safety calls for isolation turn voice to of US broadband 41% of US broadband households reporting using servicea telehealth in the up from past 12 months, prior. 15% in the year – Households have turned to voice calling to maintain relationships with family and maintain relationships calling to turned voice to – Households have Social isolation organization Any those in hotspots. or with at school, away elderly check on the friends, and children serve calls to on voice has relied schools, to communities religious from presence, digital without a robust its constituencies. WFH has shifted the burden of telecommunications from from of telecommunications WFH has shifted the burden everynow with competing to the home, the office other apps conferencing Video personal use of home networks. and RingCentral, GoToMeeting, Teams, Microsoft— Zoom, enhancing by WFH employees Google enabling Meet — are screen calling with video conferencing, traditional voice commissioning enterprise are tools. IM/chat, and other collaboration sharing, for home use. office phones, desktop headsets to from hardware, telephony – The recent necessity of remote necessity of remote recent The home (WFH) from – Work or voluntarily local ordinances by workers, either mandated that a movement accelerated has companies, by adopted underway. was well preferable is driving spike. calling the current preferable Drivers and Use Cases Use and Drivers that make and use cases of drivers attractive general calling of calling specific modes and A convergence All rights reserved | www.parksassociates.com | © Parks Associates calls take primarily five primarily forms: calls take While fixed copper wire andahalf, linesenabledlandline voice calling for acentury today’s residential voice Today’s Residential Calling Technologies (traditional landline) Voice Over Protocolor VoIP) (a form of Voice Protocol (VoIP) (a form of VoIP Over Internet Internet Over Wi-Fi Calling Fixed-line IP Fixed-line calling) Mobile Type

communication communication communication Voice, video, Voice, video, Voice, video, Mode unified unified unified Voice Voice bridges; peripheral devices peripheral bridges; andcalling tablets, , LTE includinglaptops, connection, Any withacellular mobiledevice by an ISP service; peripheral devices peripheral by anISPservice; residential Wi-Fi enabled network to phonewithconnectivity Mobile service to ISP connection with hardwaretransceiver; orgateway withwireless tophone connected ISPlinevia provider line;cordless DECT service stations pluggedinto anInternet phoneswithbase Cordless DECT to thesedevices earphones, buds, podsconnected eral wired orwireless headsets, - periph ers, tablets, smartphones; to analog phones,bridges comput , digital telephone nications device, includingdigital commu- Any internet-connected plugged directlyinto afixed-line into afixed-line ora telephone phones withbasestationsplugged Communications Technology) (Digital Enhanced Cordless DECT Hardware - (3G, 4G,5G) ofcellularmobilenetwork Any type internet service provider service internet usedby the ofIPnetwork Any type carriers rather thantraditionaltelephone utilizesprovider; packet-switched VoIP broadband over power lines;satellite Fiber opticlines;coaxialcable internet service provider service internet usedby the ofIPnetwork Any type Service (POTS) Service (PSTN)orPlain Old Network Telephone traditional Public Switched Telephone the telephone linescomprising Dedicated analogcopperwire Network

Voice as a Lifeline and the Transformation of Home Telephony - © Parks Associates © Parks

migration projects in all the regions they serve. underway. Orange is well projects in all the regions migration 2025. by migrations complete has plans to BT copper lines with fiber optic replacing been have Verizon and In the US, AT&T full migration. from away years several cable but remain Swisscom and Deutsche Telekom report they have completed their massive report their massive completed they have Telekom and DeutscheSwisscom • • • As VoIP technology has gained traction since its introduction in 1995, unified communication platforms have has gained traction have technology since its introduction in 1995, unified communication platforms VoIP As and sharing, chat, screen video, of communication, including voice, multimodal forms that integrate emerged services During popular and new the COVID-19 B2B video conferencing have pandemic, features. collaborative unified communica Several of these also offer their capabilities. households to of residential droves introduced In recent years, most traditional fixed-line networks have been migrating to IP been migrating networks most traditional fixed-line have In years, recent Mobile-Only Households also almost 16 million mobile-only are In there the US today a huge rush during the first two months of the pandemic as work-from-home a huge rush duringwork-from-home the first the pandemic as months of two Telephony devices. VoIP-enabled enterprises provide to drove requirements in sales of headsets and increase manufacturer Snom experienced a ten-fold supporting IP office phone. or desktop a laptop that can plug into and DECT on model. 20-70% depending by USB sticks increased Wi-Fi Sales of Snom also reports a new phenomenon of workers taking IP desktop their office features, speaker phone of audio quality, the benefits phones home with them for Jabra reports contact and line-switching a Similarly, lists, capabilities. integrated backorders for and headphones that created major uptick in sales of headsets models. many networkingfor consumers. for businesses and secondly first infrastructure the enterprise. tions solutions for the Internet access to is whose only broadband households, a mobile data plan. Mobile-onlythrough most homes are Italy has almost adults and renters. popular among young six million mobile-only almost accounting for households, 1 in 4 homes. VoIP enterprise devices report for manufacturers sales experienced hardware Telephony Traditional Fixed-Line Traditional over network concern public service resilience, capacityAs expressed officials government and and providers their German upgraded reports Gigaset handset manufacturer in certain consumers regions many European working had a Households that reliable backup place. was in system a fixed-line to ensure telephones fixed-line phones. fixed-line updated service, purchased with broadband bundling though unused, in place due to even by 400% during grew its online shop headsets from VoIP Gigaset reports sales of its DECT phones and fixed-line weeks of lockdowns. few the first All rights reserved | www.parksassociates.com | © Parks Associates emergency responders.emergency theirlifelineis often includinghealthcare for and andaccessto awiderangeofservices, socialconnection Still, for segments ofconsumerssuchastheelderly, ruralresidents, andlower incomehouseholds, thefixed-line decreasing for anumberofyears to dueto mobileand shifts VoIP calling. andthroughout theEuropean theUK, Union,thenumberoffixed-linehasbeen America, connections North In The aCritical LandlineRemains Lifeline 40 60 50 20 30 70 10 Source: International Union 0 Netherlands, US,andSweden have declined to less than40%. than 50%per100people, fixed telephone subscriptionsinthe While France, Germany, andtheUKstillhave penetration ofmore 1960 The numberof xed (landline)telephone subscriptions, measured per100people Fixed Telephone Subscriptions, 1960to 2017 901980 1970 902000 1990 OurWorldInData.org/technology-adoption/· CC BY 2010 2017 Sweden United States Netherlands Canada Spain United Kingdom Germany France

Voice as a Lifeline and the Transformation of Home Telephony

or disturbance. or disturbance. service common with from calls more suffers dropped disruptions or calling rarely Reliability: Fixed-line services. VoIP some mobile or overburdened to relief provided Landlines have networks: mobile and broadband Shifts from burden Wi-Fi and competition on the home broadband household level, the networks. At mobile and broadband communication “backup” a valuable provided Landlines have calls. VoIP networks can disrupt the quality of households. advanced the most technologically even for system critical services:Life life-critical Many services patient such as emergency remote services, healthcare, telecommunications. fixed-line for and home security designed monitoring, are currently reliable user experiences to deliver calls benefits enable fixed-line these altogether, Taken experience: User and interruptions of service. buffering in terms from of sound quality freedom and Familiar and easy-to-use for elders and underserved easy-to-use and for populations. Familiar Familiarity: related contracts and their of mobile and broadband Cost formvoice calling. of Most affordable Affordable: attractive. data limits can make landlines more connectivity structures: building Mobile by can struggle for phones Unlimited inside certain designs home VoIP can challenge coverage Wi-Fi reliable service. Spotty provide and building materials while fixed-lines calls. clear sound quality delivers without distortion calling consistently quality: Fixed-line Voice Continue to serve to Installed Continue base: ~40 – 60% of North American and EU households. • • • • • • • • • critical value of traditional landlines even as alternative modes of calling have thrived. For these reasons, many many these reasons, For thrived. of calling have modes critical as alternative landlines even value of traditional them. most to people still turn a landline call when the call matters to Continuing Benefits Landlines of Continuing but the COVID-19 adoption, the crisis in residential has underscored surge continue their calling VoIP Mobile and All rights reserved | www.parksassociates.com | © Parks Associates Regardless ofthetransformation coming, itwillalways begoodto hearsomeone’s voice. work-from-home andeldercare markets. theemerging bundlesmightserve figure strategy significantly and new service how network inlong-term providers andregulators willbewisetoService considerhow fixed-line calling(traditionaland VoIP) continues to living solutionswillallrequire telephony support. lovedkeep onesconnected, cared for, andsafe. Telemedicine, remote patient monitoring, andindependent A renewed for concern theelderly, vulnerable, andsociallyisolated willdriveappreciation oftechnologies that willseewideradoptionfor peripherals calling. high-quality, reliable voice callingwillbeincreasingly indemand. Consumer electronicstrends alsosuggest with alarger share ofwork-from-home employees. Asandhomeconverge, theenterprise solutionsthatdeliver Many companiesalready forecast areductioninofficetomodels shift plan asthey topermanently footprints The future offixed-line telephony enabled by IP technology now purchase generators andotherself-sustainingequipment. reinforce acommitmentto retain are landlinesasareliable overburdened, whennetworks backup justaspeople allmannerof Landlines willcontinuemigration to support VoIP calls. For somehouseholds, may thisexperience The Future ofHome Telephony already inplay andunderscored theinvaluable place for voice callinginallitsforms. Whether the COVID-19 onhome crisisalone haslastingeffects telephony, ithasaccelerated trends • • • • • Ability to runmultiplephonelinesacrossAbility asinglebroadband link Enhanced callfilters andanonymousto blockunwanted calls advertising Landline numberusedfor mobilecalling Simpler calldiversion from fixed officelines tomobile or residentiallandlines Simultaneous ringing onmobileandlandlinephones willincludefeatures suchas:

Voice as a Lifeline and the Transformation of Home Telephony

www.dect.org DECT: A Wireless Voice Technology Technology Voice DECT: Wireless A the Heartat Calling of Residential With its longevity, DECT is now installed in over a billion systems and three three and a billion systems DECT in over installed is now its longevity, With 100 million European DECT in around is found devices. billion telephony sold are systems residential 50 million new and almost home gateways, each year. DECT on LinkedIn DECT on Twitter DECT on YouTube DECT workplace workers call center headsets used by for and others also is often fixed-line used in wireless In calls. the workplace, DECT interfacingVoIP for a valuable technology with both has provided and DECT—Digital Enhanced Communications Technology—provides a collection of technologies that along that along collection a of technologies Technology—provides Communications Enhanced DECT—Digital telephony. as IP well as telephony PSTN fixed-line traditional enables applications, diverse other with many two a half decades has evolved and home phones for enable cordless to used audio standard wireless The which supports IP-DECT handsets, across interoperability base stations, supportto IP calling via DECT CAT-iq, internet service included DECT long have who in providers microchips CAT-iq, With and CPE equipment. historicThe telephony. fixed-line for IP calling Voice can support gateways their modems and Multi-line HD qualityand extremely reliable security, latency, low hallmarksDECT of range, clarity, been voice have 250 meters), range (up to a greater workers roam freeing while to phone systems analogue and IP telephony With the enterprise merging now lines. or home mobile lines, room lines, to conference and handoff calls workers, DECT work-from-home with the home for will be an important a delivering for technology During the pandemic, BT (British Telecom) shifted over 8,000 of its customer service 8,000 of its customer shifted over contact agents from Telecom) (British BT During the pandemic, sold each year. are systems enterprise million DECT-enabled Twenty of service. calls. VoIP high-quality experience for voice headsets. VoIP and VPNs, connections, secure Wi-Fi home using work-owned laptops, work from to centers 6,000 over are In there home. the UK alone, work from reports to company The workers 70% of its prefer working population. 4% of the UK’s – around 225,000 people over employing contact centers, different DECT in the workplace used home of contact technologies work from center will enable a substantial share in the future. All rights reserved | www.parksassociates.com | © Parks Associates ensure that all information in this report iscorrect.ensure We thatallinformationinthisreport errors. foranyinadvertent assumenoresponsibility from inwriting thepublisher.permission Printed intheUnited States ofAmerica. © Parks Associates, Addison, Texas ofthisbook may bereproduced, Nopart reserved. 75001.Allrights inany form orby any means, without ATTRIBUTION—Authored by Brad Russell. Published by Parks Associates. About The Author About The networking, insurtech, connected health,housinginnovation, connected homeenergy management insurtech, networking, IoT Connected hometechnologies andsecurity,INDUSTRY EXPERTISE: andservices, home dataprivacy Austin. aM.Div. Healsoearned andaD.Min. collaboration. withconcentrationsinethicsandcross-cultural fromBrad received of theUniversity degreeandmarketing hisBachelorofScience inadvertising Texas at communications, andonlinemedia. technology startups, practices. Hehasabackground inmarketing more astute businessstrategy andvalue-generating For more information, visitparksassociates.com home control systems andsecurity. consumerapps, consumerelectronics, advancedadvertising, energy services, management, and support digital health,mobileapplications andservices, andtelevision services, and gaming, Internet homenetworks, The company’s of digital mediaandplatforms, includestheInternet entertainment expertise Things (IoT), Brad balances the art and of market research andscienceofmarket to generate insightsthatleadtoBrad balancestheart strategies.ecosystem andcompetitive landscapes, channelanalyses, andgo-to-market Brad’splatform services. custom research sizingandforecasts, includesmarket work IoTsecurity, applications, andsecurity, and homenetworking, data-driven dataprivacy residential andservices, homedevices converging home—smart intheconnected Brad leadsParks Associates’ issues leading-edge hometeam, connected exploring Brad Russell, service subscriptions. service research, custom research, workshops, executive conferences, andannual studies, consumer primary reports, throughFortune market 500to smallstart-ups Founded in1986,Parks Associates creates research capitalfor companiesranging from company specializinginemerging consumertechnology productsandservices. 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