The state of the communications market in 2017


One of the most frequent questions I get when I meet new people asking about what we do is "How large is the market you're in?"

Xoxzo is a CPaaS (Communication Platform As A Service) and it might be difficult and not so straightforward to figure out what kind of market we're in. We're an internet platform (in the IT market) that connects phones (telecommunication market) used by web developers.

telecomm

For us, the focus is not who our direct customers are (the web developers) but who they can connect to using our tool. The bigger and more diverse this pool is, the more useful our tool will be.

1.45 trillion (2% of world GDP) is slated to be used by 2019

USD1.45 trillion (around 2% world's GDP) is slated to be used by 2019 for telecommunication services by SMBs.

Information Technology (IT) and traditional communications such as phones calls and SMS are converging at a much faster pace and in much more closer and seamless fashion than ever before. The spending on purely IT or purely communications have blurred, and now we can see a huge demand for this combined market.

Regardless of the big spending by SMBs for telecommunication services, the major telecom players are more interested in focusing on multinationals and the large-scale direct consumer market but are skipping the SMBs due to the inefficiency of the sales process.

By the end of the decade, 3/4 of the population will have a mobile subscription

For us, every single phone number is a potential to be a recipient of a call or SMS. This is how large our potential user base is, with half of those subscriptions in APAC with India being the fastest growing market.

An interesting fact is we only have around just over 2000 mobile operators of various stages (full GSM operators with a license, MVNOs, MNO sub-brands) that are servicing the communication demands of these 5.7 billion people worldwide.

There is a huge opportunity to disrupt and create more choices for more people.

Twilio grew revenue by 66% YoY in 2016

83% of Twilio's revenue is generated from within the United States alone, leaving a huge opportunity to the rest of the world untouched.

Twilio considers that accounts with more than USD5 of spending within a defined period as active accounts, and there was a 44% increase from 25,347 accounts in 2015 to 36,606 accounts in 2016. There are good traction and demand for CPaaS.

In short, huge opportunities

We believe there are huge opportunities and untapped demand for a simple and reliable CPaaS.

  • Because of the growing market overall
  • Outside of the United States
  • Especially in South Asia and South East Asia