Mexico has found to be Latin America’s leader in cloud-based unified communications (UC) services, with the country accounting for 32% of the 950,000 cloud-based unified communications users in the region last year, according to a study by research firm Frost & Sullivan.

IP telephony and unified communications and collaboration (UC&C) services are being adopted by several industry verticals, including banks, financial services, and insurance, retail and consumer goods, and professional services, according to the report.

With new service providers entering the market and existing participants widening their service portfolios, competition is growing like never before.

Last month, for example, Germany-based provider UC Point established an office in Mexico City, saying that it would serve its Latin American clients out of Mexico. UC Point’s portfolio covers network analysis and conferencing solutions.

The Mexican telecommunications reform and the increased competition stemming from the arrival of giants like AT&T could also have contributed to the growth.

All over the world, people are increasingly shunning premises-based UC&C solutions and switching to cloud-based UC&C platforms that offer enhanced flexibility and scalability. According to Infonetics’ 2014 study, cloud PBX users are multiplying by the day globally and are moving away from proprietary PBXs. It predicted that the global UC industry would reach US$12 billion by 2018.

Frost & Sullivan says service providers across Latin America are focusing on advanced UC&C functionalities, such as web and video conferencing, persistent chat rooms, mobility and the use of multiple devices, and integration with external applications and devices.