VoIP market growing strong -- survey

VoIP market growing strong -- survey

April 08, 2006
Updated 03:35pm (Mla time)

Agence France-Presse

WASHINGTON -- Internet telephony is giving traditional phone service a run for its money, and is expected to be used by 32.6 million US households in 2010, a new survey suggests.

The survey released this week by eMarketer suggests that VoIP, or voice over Internet protocol, is luring customers with low prices but that this is just one component in a 300-billion-dollar market for residential voice and data services.

The report suggests that 40 percent of US households with a high-speed Internet connection will be using VoIP by 2010.

"Consumers are not in the least interested in the technology of VoIP but rather the potential cost savings it offers," said Ben Macklin, eMarketer senior analyst

VoIP calling services average 20 to 40 dollars a month, while the average residential phone bill in the US is 51 dollars, the report said. The lower cost of VoIP is partly explained by the heavier taxes imposed on residential phone use.

Landline subscribers are already falling; in 2005, 194.5 million people subscribed to mobile phones, while just 172.1 million signed up for landlines.

This drop is expected to be furthered as consumers and businesses replace landlines with broadband services that offer a variety of services including Internet and video.

"A fierce battle is emerging in the VoIP market," says Macklin. Firms such as Verizon or Comcast may be offering packages linking mobile phones with other services in the home, the report said.

Companies are fighting for the "triple-play," or control over residential voice, video, and data services. Now, with a fourth technology in the game, mobile phone service, "the quadruple play has emerged," he said.

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