Voice over Internet protocol (VoIP) service providers are gearing up to deal with the substantial increase in demand as well as challenges associated with moving into the mass market. They have to address the issues of pricing, regulatory uncertainty, and competition to be successful in the big league.
New analysis from Frost & Sullivan (telecom.frost.com), North American Residential VoIP Markets, reveals that market revenue totaled $295.1 million in 2004 and expects to reach $4,076.7 million in 2010.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American Residential VoIP Markets, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla[...]frost.com, with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. Upon receipt of the above information, a confirmation/pass code for the live briefing will be emailed to you.
Mass-market customers, unlike early adopters, are not attracted to new technology. They must be convinced that IP telephony is superior to plain old telephone service (POTS) and can provide access to 911 networks.
“Customer apprehension about the value of the service can be overcome by increasing awareness about the advantages of VoIP over traditional telephony,” says Frost & Sullivan Senior Analyst Lynda Starr. “The issue of providing timely access to 911 can be alleviated through industry cooperation.”
Once all issues are resolved, VoIP-based services will burgeon due to greater broadband penetration, service providers’ need to increase revenue, and. availability of low-priced services.
While potential subscribers are likely to show initial interest in IP telephony due to its cost savings, they will choose the service for additional features such as virtual numbers and videoconferencing.
VoIP also enables advanced features including Web-based call logs, click-to-dial, and scheduling phone calls. These options increase customer satisfaction and offer providers additional revenue streams.
However, some participants such as the incumbent telecommunications service providers correctly perceive competition from new IP telephony providers as a threat to their revenue. In the past, incumbent local exchange carriers (ILECs) in the United States have lost 15.0 million access lines to various competitors. Many of these lines are second lines used by teens, telecommuters, and for data 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,” notes Starr. “If an ILEC offers VoIP, it risks cannibalizing traditional revenue but also opens up new revenue streams.”
The residential VoIP market expects to witness significant growth in the customer base and revenue despite residential VoIP subscriptions still being in the nascent market stage.
Service providers that also deal in cable, Internet service provider (ISP), and non-telecom operations are likely to enter the market, and thereby drive the growth of VoIP lines from 1.5 million to more than 18.0 million during 2004-2010.
North America Residential VoIP Markets is part of the IP Communications subscription and discusses the opportunities and challenges faced by virtual network operators, incumbent providers, cable operators, and other new service providers targeting the market with VoIP-based services. It also enables companies to align their positioning strategies to benefit from the changing market and obtain maximum return on investment. Analyst interviews and executive summaries are available to the press.
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Keywords in this release: voice over Internet protocol, residential VoIP, North America, plain old telephone service, POTS, 911, Web-based call logs, click-to-dial, incumbent local exchange carrier, ILEC, Internet service provider, ISP, research, information, market, trends, technology, service, forecast, market share