Residential VoIP Market Outlook

October 2008 - 17 pages

R. Daniel Power - Contributing Analyst

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Abstract

Residential subscriptions to VoIP service have been growing dramatically in the past few quarters, even as the growth in uptake of other advanced home communications services slows down. We are forecasting that VoIP-connected households should exceed 25 million by the end of the decade, and will grow at about 14% annually over the next few years. In this report, we offer more detailed forecasts plus an analysis of the various residential VoIP services on the market.

Table of Contents

TABLE OF CONTENTS
Introduction
RBOC Residential POTS Line Losses
Rise of the Cable MSOs
Stand-alone VOIP Providers
Video Services and Bundling
Major VoIP Providers
AT&T
Comcast
Cox
Qwest
Skype
Time Warner Cable
Verizon
Vonage
Competitive Feature Summary
Residential VOIP Price Comparison
Market Forecast
Subscriber Lines
Revenue
Also from Pike & Fischer
About Pike & Fischer’s Broadband Advisory Services

TABLE OF FIGURES
Figure 1: RBOC Residential Circuit-Switched Lines
Figure 2: RBOC Annual Circuit-Switched Line Declines
Figure 3: VoIP Subscribers, Comcast, Cox and Time Warner Cable
Figure 4: Feature Comparison
Figure 5: Residential VoIP Price Comparison
Figure 6: Projected Total U.S. Residential VoIP Lines (2008-2013)
Figure 7: Total Residential VoIP Service Revenue (2008-2013)


Press Release

FOR IMMEDIATE RELEASE

VoIP-Connected Households to Grow by 8.5 Million by 2011

Silver Spring, Md.— About 8.5 million more U.S. households will start using Voice over Internet Protocol (VoIP) for their home phone service over the next two years, according to a new forecast from Pike & Fischer’s Broadband Advisory Services.

The number of VoIP-connected households in the United States will approach 30 million by the end of the decade, generating more than $11 billion in revenue for cable operators, telephone companies and network-independent providers such as Skype, P&F predicts.

The Silver Spring, Md.-based market research group reports these projections in a new report, Residential VoIP Market Outlook. P&F reached its conclusions by examining recent growth trends in consumer adoption of VoIP services, and factoring in the growing prevalence of digital service bundles that include multichannel video, high-speed Internet and home phone. VoIP-connected households are expected to grow at about 14 percent annually over the next five years, P&F projects.

Although top telephone companies such as Verizon and AT&T will see their overall residential lines continue to decline, they will see their VoIP customers increase steadily as they attract more customers to their fiber-optic service packages (Verizon’s FiOS and AT&T’s U-verse), according to the analysis. The cable industry, which is much further along in capturing VoIP customers, will see subscriber growth slow somewhat from its torrid pace, the report states.

It is unlikely that the smaller VoIP service providers such as Vonage will see much growth because, unlike the facilities-based providers, they lack the advantage of wrapping their service into discount bundles.

Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. The report, Residential VoIP Market Outlook, is priced at $399 and is available for purchase at www.broadbandadvisoryservices.com. For analyst commentary or to request a briefing, contact Scott Sleek at 301-562-1530, ext. 291 / ssleek@pf.com.

For information about Pike & Fischer’s Broadband Advisory Services, visit www.broadbandadvisoryservices.com or contact Jonathan Wentworth Ping at 973-718-4703 / jping@pf.com.



About the Analyst

R. Daniel Power

R. Daniel Power has over 25 years' experience in the telecom and computer industries. He started his telecom career in market research and analysis while at General Electric. In his next position he was responsible for indirect channel sales at Data-Control Systems. Following that he had a series of positions with increasing scope and responsibility in product management. Products under his management included transmission devices and computer peripherals under several brand names, including Teletype Corporation and NCR. Power also worked with Lucent Technologies on strategy and portfolio management, eventually having responsibility for the entire Lucent product portfolio. Today, Power is a Level II candidate in the Chartered Financial Analyst (CFA) Program, a globally recognized standard for measuring the competence and integrity of financial analysts. He holds a BS ME from Lafayette College and an MBA in Marketing from Columbia Business School.

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