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January 24, 2007

In-Stat: Wholesale VoIP Revenues Growing

This year looks to be shaping up nicely for wholesale VoIP providers. The U.S. market for VoIP advanced dramatically in 2006, adding 3.8 million VoIP households in 2006, according to In-Stat (News - Alert).
The result is that wholesale VoIP revenues are growing quickly as MSOs, Skype (News - Alert), and a myriad of new entrants—most lacking network facilities—drive demand for telephony features and applications.
“As retail VoIP expands, wholesale VoIP will accelerate quickly,” said In-Stat analyst Bryan Van Dussen, in a statement. “The largest segment remains international VoIP, but we expect the market for local services to surge from 12 percent of all revenues to 27 percent by 2010.”
Recent research by In-Stat also predicted that consumer VoIP adoption will drive wholesale VoIP revenues to $3.8 billion by 2010 from $1.1 billion in 2006. What’s more, international wholesale VoIP termination/origination revenues is experiencing declining growth rates. Over the long-haul, wholesale VoIP is expected to experience significant migration of TDM services throughout the forecast period, and become a majority of the international market by 2009.
The research, “Wholesale VoIP Forecast: Consumer VoIP Accelerates Demand,” covers the market for wholesale VoIP services. It provides a market forecast of U.S. VoIP households and wholesale VoIP revenues segmented by main product categories. Analysis of the wholesale market is presented, including market drivers and barriers and three key trends: peering, bundling, and QoS.

Want the latest scoop on all things VoIP? Make sure you attend INTERNET TELEPHONY Conference & Expo East, January 23-26, 2007 in Fort Lauderdale, Florida. Between sessions, check out Rich Tehrani’s analysis of the communications industry in 2007.

Cindy Waxer is a Toronto-based freelance journalist specializing in business and technology. She has written for publications including TIME, Fortune Small Business, Business 2.0, Computerworld, Canadian Business, and Workforce Management. To see more of her articles, please visit Cindy Waxer’s columnist page.


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