200506-1: U.S. Residential VoIP to Exceed $1bn in 2005
Although the technology behind Voice-over-IP has existed for well over a decade, only recently has VoIP been capable of replacing the home phone service of residential customers. The result has been stunning growth: U.S. residential subscriber totals have jumped from 150,000 at the end of 2003 to well over 2 million as of March 2005. According to preliminary findings from TeleGeography's latest research, total subscribers in the U.S. should exceed 4.1 million by year end, generating over $1bn in gross revenues for the year.
As of today, the largest provider of home VoIP service has been Vonage, which entered the market early but does not own a communications network of its own. Close on the heels of Vonage now are the cable companies, which have a huge installed base of broadband customers and nearly ubiquitous connectivity. By the end of 2005, TeleGeography predicts that Cablevision, Comcast, and Time Warner together will have 2 million subscribers and nearly one-half of the total residential VoIP market.
This analysis is excerpted from the U.S. VoIP Report, TeleGeography's new study of carriers and consumers of broadband voice service in the U.S.