May 24, 2006
By Patrick Barnard
TMCnet Associate Editor

A recent report from the market research firm TeleGeography (www.telegeography.com) serves as yet more evidence that VoIP has fully gone mainstream and is here to stay.

According to the most recent quarterly update to the company’s U.S. VoIP Report, the total number of subscribers to VoIP services grew from 1.3 million to 4.5 million - an increase of 248 percent - from the fourth quarter of 2004 to the end of 2005. This translated into operator revenue growth of more 300 percent, from less than $200 million in 2004 to over $1 billion in 2005.

TeleGeography predicts that by 2010, almost 19 million VoBB (Voice over Broadband) lines will be in service. This growth will largely come at the expense of incumbent telephone companies.

According to the report, a significant percentage of the growth was driven by the continued success of the market leaders, including Vonage and Time Warner. Cablevision and Comcast round out the top four operators.

The report finds that cable companies account for 52 percent of the market, with Enhanced Service Providers (such as Vonage) covering 37 percent. The remainder is served by telecommunications carriers including AT&T and Verizon.

The report provides quarterly updates of the U.S. consumer VoIP market, including carrier competition, revenues and market growth. It also includes analysis of consumer preferences based on primary research, as well as regulatory and technical reviews.

For more information, visit http://www.telegeography.com/.