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Hosted PBX Industry Gripped by Pricing Mayhem Finds Eastern Management Group Study

6/25/2018
New hosted PBX research report from the Eastern Management Group chronicles prices for UCaaS cloud services 
 
New York, NY (June 25, 2018) – A new hosted PBX research report from the Eastern Management Group chronicles prices for UCaaS cloud services that are in chaos, as vendors battle among themselves for customers.
 
As a consequence, vendor sales and margins are perpetually out of sync with the demand for hosted PBXs. According Eastern Management Group, a research and consulting firm, vendor financials are consistently turning-in lower across the board performance than what is within reach. 
 
The pricing study performed by Eastern Management Group analyzed vendor list and street prices for identical systems. Ten large vendors were examined: 8x8, Comcast, EarthLink, Mitel, RingCentral, ShoreTel, TDS, Vonage, Verizon, and West. 

Eastern Management Group’s research found the most expensive of the 10 UCaaS providers to be three times costlier than the cheapest. Six providers price their services so low that these companies are leaving considerable money on the table. 

The Eastern Management Group determined that three of the 10 UCaaS competitors price their service 40% or more below the market leader. Six of the 10 are priced so low as to be far off the mark of customer willingness to pay. According to Eastern Management Group’s President, John Malone, “Bottom feeder discounts are unnecessary to capture UCaaS market share. Many hosted PBX vendors can and should be charging a premium price for their offers”. What frequently gets hosted PBX vendors into trouble is setting prices based only on cursory examinations of competitors’ come-on prices advertised on the internet. 

The report “Worldwide Hosted PBX Market 2017-2022” and a free table of contents and purchasing information is available from Eastern Management Group. 

About: The Eastern Management Group is a global communications research and consulting company.  Founded in 1979, it is one of the oldest and most experienced firms of its kind in the world. The company is based in New York.
 
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