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VoIP Feature Article

VoIP

[November 1, 2004]

Converged Services: Study Shows Consumers Would Switch to VoIP


Broadband service platform provider 2Wire recently polled 2,000 DSL subscribers in order to identify the factors pushing consumers towards converged services.

According to 2Wire's release, the majority of respondents indicated that they would subscribe to Voice over IP (VoIP), or would consolidate their telephone, Internet and TV services to a single provider. The leading motivator? Cost savings. 91 percent would switch their traditional phone service to VoIP if they found out their telco was now offering the service, 32 percent would do so without hesitation and 59 percent would switch if offered significant savings.

Says William Cheek, analyst for Parks Associates, "Cost savings is definitely a powerful lure for bundled servicess. As we found in our study Bundled Services: Analysis and Forecasts, the bundle in itself is not enough. Service providers must offer additional value through pricing or features like home networking."

"Cost savings is just the tip of the iceberg when it comes to the benefits of converged services. Convenience and flexibility of these and future services will also be key for the always-connected digital lifestyle," said Brian Sugar, VP of marketing at 2Wire. "Telecom service providers, with their existing investments in data networking applications and their ability to offer services that span wireless and wireline voice, data, and entertainment, are in a unique position to capitalize on this market opportunity."

VoIP is a process of sending voice telephone signals over the Internet or other data network. If the telephone signal is in analog form (voice or fax) the signal is first converted to a digital form. Packet routing information is then added to the digital voice signal so it can be routed through the Internet or data network.

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