[September 13, 2004] Voice Over IP Has Left the Garage, says ABI Research OYSTER BAY, N.Y. --(Business Wire)-- Sept. 13, 2004 -- Until recently, Voice Over IP (VoIP) has been a marginal service, mainly useful for technophiles and early adopters. But according to a new study from ABI Research, we have entered a critical period in VoIP's deployment, a period that will see the industry mature and VoIP communication easily available for mass consumption. The new report, "Residential VoIP Markets", lays out the drivers, barriers, and opportunities in the broadband VoIP market, and provides forecasts for the broadband VoIP market by access technology and by region. According to ABI Research's director of broadband research, Vamsi Sistla, it concludes that VoIP is no longer a "garage application", but the thin end of a wedge that will eventually include such features as videoconferencing and ubiquitous information sharing. What will drive its adoption? Is the quality of service and robustness good enough to put residential VoIP service on par with traditional telephony? Telecommunication companies, fearing erosion of their revenues from conventional phone services, are gradually replacing their circuit-switched networks with modern packet-switched replacements offering lower cost with greater reliability and security. "It won't happen overnight," says Phil Solis, senior analyst at ABI Research, "but the momentum is unstoppable." One clue will be when telecommunications regulators start to pay attention, as the British Ofcom has just done, allowing VoIP providers to offer their customers a "cyberspace area code" not tied to any geographical location. Regulators also want to make money: as Sistla points out, a sizeable fraction of a conventional phone bill goes to the government; so far, the tax on VoIP services is much smaller or nonexistent. Industry stakeholders want answers. What will it take for leading telcos to start investing in this technology? How fast will VoIP grow? When is the right time to invest, and where? Which kind of broadband access is best, and how much bandwidth is enough? Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516.624.3113. [ Back To TMCnet.com's Homepage ]