U.S. Residential VoIP Market to Grow Ninefold

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Voice over Internet Protocol (VoIP) in American homes is projected to grow from 3 million this year to 27 million by the end of 2009, according to a new IDC report on domestic subscribers to residential VoIP services. This trend is being driven by major telecom firms adding various VoIP offerings in recent years to stay competitive in the technology-fueled communications market, customers who want to add value to their telephony service and price-based marketing of VoIP services.


The IDC report, “U.S. Residential VoIP Services 2005-2009 Forecast and Analysis: Miles to Go Before We Sleep” (an allusion to the Robert Frost poem “Stopping in the Woods on a Snowy Evening”), takes a look at the present market for residential VoIP delivered over a broadband connection, makes forecasts for future growth and examines how that growth will impact the current telecom environment for consumers in the United States. The study also includes a summary of the current consumer VoIP service offerings from leading providers.


The findings contained in the report show the promise VoIP holds for the domestic consumer market is starting to be realized, in spite of slow growth in its early stages. In addition, the study maintains that telecom firms that offer VoIP will need to inform buyers about the numerous features and functions of their services to avert a looming price war.


Integration of applications and facilitation of convergence are critical capabilities that carriers will need to offer in the next few years. According to William Stofega, senior analyst in IDC’s VoIP services research program, the imperative for companies that offer VoIP is to prove this technology is better and more affordable than traditional telephone service. He added that the top performers in the VoIP sector would be the firms that optimized the agility of Internet protocol to the greatest extent.


While the current field of VoIP providers is teeming with both traditional and next-generation carriers, IDC predicts that even more vendors, particularly cable multi-service operators, will roll out additional consumer-oriented VoIP products and solutions this year.


For more information, see http://www.idc.com.

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