In-Stat Reports 9% of U.S. Households Now Use a VoIP Telephone Service, Up From 8% at the End of Q3
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[March 28, 2007]

In-Stat Reports 9% of U.S. Households Now Use a VoIP Telephone Service, Up From 8% at the End of Q3

SCOTTSDALE, Ariz. --(Business Wire)-- Cable operators and Vonage are driving continuing growth in the US residential Voice over Internet Protocol (VoIP) telephone market, according to In-Stat (http://www.in-stat.com). According to data from the high-tech market research firm's US Residential VoIP Market Tracker service, more than 10.6 million US households now have at least one active VoIP user, up from approximately 9 million households at the end of Q3. The emergence of the cable operators as a dominant market force seems to have slowed the growth of the client-based VoIP market, with only Skype showing gains in this segment during the 4th Quarter.


The firm's service utilizes a combination of end-user research and market analysis to estimate usage and market share among all of the major service providers, network-based providers such as the cable operators, analog-telephone adapter (ATA)-based services providers such as Vonage and SunRocket, and client-based providers such as Skype, on an ongoing basis. Recent research from the service also revealed that:

-- More than 61% of active residential VoIP users reported that they had discontinued or replaced a traditional (non-VoIP) phone service when they got their VoIP service, including a whopping 76% of those who use only a network/ATA-based service like those offered by the cable companies or Vonage.


-- Skype's dominance of the client-based VoIP market has grown as its major competitors in this segment lost active users during the fourth quarter while it continued to show strong growth.

-- The ability to bypass international tolls continues to be a big driver of client-based VoIP services, with users of client-based VoIP services reporting that 52% of their VoIP calls are international long distance while network/ATA-based VoIP users report only 6% of their calls are international long distance.

-- The percentage of residential VoIP users who report that they use their service for business calls either in part or exclusively continues to rise with 51% reporting that they use the service for both business and personal calls and 4% reporting they use it exclusively for business calls.

The research, "US Residential Voice-Over IP Market Dynamics and Market Tracker: Market Summary Q4 2006" and "US Residential Voice-Over IP Market Dynamics and Market Tracker: Comprehensive Results and Analysis Q4 2006" track quarterly residential usage of both network/ATA-based (e.g., Vonage, Comcast Digital Voice) and client-based (e.g., Skype, Windows Live Messenger) VoIP services, including subscribers, users, households, and market share (approximately top 20 VoIP service providers overall) through the fourth quarter of 2006. For additional information on the summary and the comprehensive report or the service, please visit: http://www.instat.com/abstracts/voip_tracker2.asp.

About In-Stat

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.

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