VoIP Market To Hit $4 Billion By 2010: Report - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Infrastructure

VoIP Market To Hit $4 Billion By 2010: Report

Phenomenal growth will be driven by the pervasiveness of broadband Internet access and the availability of low-cost VoIP services.

The North American voice over IP (VoIP) is on the brink of a phenomenal growth spurt over the next six years, driven by the pervasiveness of broadband Internet access and the availability of low-cost VoIP services, according to Frost & Sulllivan.

According to the firm's newly-released North American Residential VoIP Markets report, the consumer VoIP market revenues will reach $4.07 billion in 2010, up more than 1300% over $295.1 million last year. Moreover, Frost & Sulllivan expects the entry of non-traditional telecommunications companies, including cable operators, Internet service provider (ISP), and non-telecom companies into the voice market to drive the number of North American VoIP lines up to 18 million from 1.5 million in the same period.

Not surprisingly, incumbent local exchange carriers (ILECs) tend to view VoIP as a threat to their market share and revenue. According to Frost & Sullivan, ILECs have lost 15 million access lines to their non-traditional competitors, though many of these were data lines and second residential lines.

"Residential subscribers are likely to replace second lines with wireless or VoIP; the benefits of VoIP include lower cost, additional features and ease of use," Frost & Sullivan Senior Analyst Lynda Starr said in a statement. "If an ILEC offers VoIP, it risks cannibalizing traditional revenue but also opens up new revenue streams."

According to the firm, mass-market customers are attracted more to quality of service and real features, rather than the promise of new technology. The initial attraction will be cost-savings, but Frost & Sullivan notes that the wealth of new telephony and media features and the delivery of consistent E-911 service will ensure VoIP's success.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
News
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
Slideshows
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
White Papers
Register for InformationWeek Newsletters
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll