U.S. Residential VoIP to Exceed $1bn in 2005

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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. To learn more about this area of research and related services, please visit the web site: http://www.telegeography.com/products/us_voip

06/2005, PriMetrica, Inc.

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