Business VoIP Featured Article
Study: VoIP Telephony Market to Reach 25 Million by 2012
May 07, 2007
Greater broadband sponsorship and aggressive market expansion by cable operators will enable the Voice over Internet Protocol (VoIP
) telephony market to top 25 million households by 2012, according to a study by JupiterResearch report titled, “US Broadband Telephony Forecast, 2007 to 2012:Cable MSOs assert their dominance in the VoIP market.”
) telephony market to top 25 million households by 2012, according to a study by JupiterResearch report titled, “US Broadband Telephony Forecast, 2007 to 2012:Cable MSOs assert their dominance in the VoIP market.” JupiterResearch found the ability to successfully bundle broadband telephony with other relevant services will continue to drive consumers’ adoption of cable-based VoIP, which currently accounts for 71 percent of the VoIP telephony market.
According to the study, cable operators have finally struck a chord with consumers, as demonstrated by the acquisition of about 3.6 million new VoIP telephony customers in 2006.
“Aggressive marketing of double- and triple-play options, coupled with troubles for over-the-top VoIP providers, have given cable multi-service operators the upper-hand in the broadband telephony market, “said Douglas Williams, broadband analyst at JupiterResearch, in a statement. “The forthcoming push into the wireless market will give cable providers the flexibility to provide whatever multi-play option a consumer may want.”
No one needs to look further at the problems on VoIP phone service provider Vonage, currently in a bitter court patent dispute with Verizon, to find that the over-the-top VoIP market is increasingly at risk of becoming irrelevant. Growth of broadband connectivity, greater availability of VoIP services, aggressive promotion of bundled packages, and more diverse offerings at a lower cost could each play a significant role in the eventual demise of the single-play VoIP market, the study said.
Over-the-top VoIP providers currently add subscribers on a net basis, but reliability and service quality offered by cable providers threatens future growth opportunities for single-play providers,” said David Schatsky, president of JupiterResearch. “Additionally, the relative difference in price points for voice service is declining as cable providers drop prices and over-the-top providers have added regulatory and cost-recovery fees.”
For additional information on this report or JupiterResearch's Broadband research service, visit www.jupiterresearch.com .
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Spencer Chin is a contributing editor for virtual-pbx. To see more of his articles, please visit his columnist page.
Spencer Chin is a contributing editor for virtual-pbx. To see more of his articles, please visit his columnist page.
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