VoIP Price Fuelling Consumer Uptake

VoIP’s popularity stems from broadbands growth, with increasing bandwidth opening up opportunities for real-time voice communications over the internet. As broadband replaces dial-up, VoIP will inevitably grow.

The financial implications of VoIP are a dominant factor driving the technology forward. Ben Macklin, eMarketer senior analyst, explained: “Consumers are not in the least interested in the technology of VoIP but rather the potential cost saving it offers.

“With most VoIP offers ranging from $20 to $40 per month for unlimited local and long distance calls across the US and Canada, price will be the primary driver for the VoIP industry in the short term.”

VoIP’s success is one of the factors affecting the decline in landline numbers. eMarketer expects this trend to continue as consumers increasingly substitute their landline for a mobile and households upgrade to broadband.

Macklin commented: “While VoIP is not the cause of the falling fixed-line market, it is acting as an accelerent and the widespread availability and attractive price of VoIP services is compelling to both consumers and businesses.”

According to recent predictions from TeleGeography, total VoIP subscribers in the US grew by a massive 284% year on year in the last quarter of 2005, reaching 4.5 million, compared to just 1.3 million for the same time in 2004 (see VoIP Lines To Hit 19 Million By 2010).

Globally, the International Data Corporation forecasts strong growth for VoIP, projecting 27 million users to have subscribed by 2009 (see Popularity Of E-Shopping Continues To Grow).

In-Stat’s recent Global VoIP Has Arrived; Just Not as Expected report showed that total VoIP subscribers reached 16 million in 2005, enjoying a year on year jump of 62%. In-Stat projects the medium to grow to over 55 million in 2009 (see Popularity Of E-Shopping Continues To Grow).