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VoIP Feature Article


February 01, 2006

Branded VoIP Takes Lead in Europe and North America

Anuradha Shukla, TMCnet Contributing Editor

A study conducted by Sandvine Incorporated in November and December 2005 shows that broadband service provider-branded VoIP rollouts were extremely successful in 2005 and have taken the lead in terms of share of VoIP minutes.
The new study indicates that North American service provider-branded VoIP represents 53% of all VoIP minutes on broadband networks. Vonage, with 21.7% share of North American minutes and Skype, with a 14.4% share were the two leading third-party providers. All other third-party VoIP providers captured the remaining 10.9% share of minutes.
For this study, researchers collected the aggregate data from Sandvine's North American and European broadband customer networks where Sandvine is deployed. The analyzed data highlights the VoIP traffic trends of more than 700,000 broadband households from a group of service providers with over 6 million subscribers.
The released report by Sandvine reveals that in Europe, service provider-branded VoIP represents 51.2% of all VoIP minutes, while Skype follows closely behind with 45% of all VoIP minutes. Vonage takes less than 1% share while other third-party VoIP providers represent 3.5% of all minutes.
On the other hand, broadband providers in North America who have rolled out network-wide VoIP deployments are now successfully capturing an average of 81.8% of the VoIP minutes on their own networks. The market share in minutes for third-party VoIP providers like Vonage and Skype is 12.9% in such competitive environments.
According to Boyd Peterson, Senior Vice President, Media Research, Yankee Group,
Broadband provider-branded VoIP is, and will always continue to be a key factor in driving revenue growth and triple-play success for service providers.
“Consumers are clearly embracing the VoIP products offered by broadband service providers in Europe and North America. Sandvine customers have been able to leverage their increased understanding of Internet application traffic trends to effectively differentiate valued services like VoIP and enhance the overall quality of experience for their subscribers," said Tom Donnelly, executive VP, marketing and sales, Sandvine.
Sandvine’s broadband network equipment is known to help broadband service providers characterize what really happens on their networks, enabling policies that improve customer satisfaction, reduce operational costs and increase profitability.
Anuradha Shukla is a contributing writer for TMCnet covering call centers, CRM and information technology.


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