VoIP is forecast to top 25 million US households by 2012, driven by greater broadband subscriptions and expansion by cable operators into new markets, according to a new report from JupiterResearch.
The report, titled
US Broadband Telephony Forecast, 2007 to 2012: Cable MSOs assert their dominance in the VoIP market, says that the ability to successfully bundle broadband telephony with other relevant services will continue to drive consumers’ adoption of cable-based VoIP, which currently accounts for 71% of the VoIP telephony market.
According to the study, growth in cable-based VoIP will drive the market going forward. After more than 10 years in the telephony business, cable operators have finally struck a chord with consumers, as demonstrated by the acquisition of about 3.6 million new VoIP telephony customers in 2006, says JupiterResearch.
Douglas Williams, broadband analyst at JupiterResearch, said: “Aggressive marketing of double- and triple-play options, coupled with troubles for over-the-top VoIP providers, have given cable MSOs the upper-hand in the broadband telephony market.
“The forthcoming push into the wireless market will give cable providers the flexibility to provide whatever multi-play option a consumer may want.”
The online analyst adds that the sufferings of Vonage, underscored by its patent-infringement case with Verizon, indicate the over-the-top VoIP market is increasingly at risk of becoming irrelevant.
Growth of broadband connectivity, greater availability of VoIP services, aggressive promotion of bundled packages, and more diverse offerings at a lower cost could each play a significant role in the eventual demise of the single-play VoIP market.
David Schatsky, president of JupiterResearch, said: “Over-the-top VoIP providers currently add subscribers on a net basis, but reliability and service quality offered by cable providers threatens future growth opportunities for single-play providers.
“Additionally, the relative difference in price points for voice service is declining as cable providers drop prices and over-the-top providers have added regulatory and cost-recovery fees.”
A recent report from In-Stat said that VoIP technology is the key market enabler for cable telephony services and subscriber growth (see VoIP Is Key Market Enabler For Cable Subscription Growth).
Meanwhile, ABI Research said that VoIP, which in 2006 had less than 38 million subscribers worldwide, should have a subscriber base of over 267 million in 2012 (see VoIP To Reach 267 Million Subscribers Worldwide).
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