VoIP Service Market Dominated by Three Providers

New research from Infonetics projects revenues to hit $23.4 billion by 2009.

By Sean Michael Kerner | Posted Oct 27, 2005
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According to Infonetics Research, the North American SOHO residential subscriber market is currently dominated by Vonage, Time Warner Cable, and Cablevision.

In 2Q'05, Vonage's market share actually declined to 32 percent, down from 36 percent in the preceding quarter (1Q'05). Vonage's 2Q'05 share is actually its lowest in 9 months.

Time Warner Cable reported a higher share at 25 percent, up from 21 percent in the first quarter, and Cablevision's share came in lower at 19 percent down from 21 percent. According to Infonetics, there is no other service provider with greater than a 3 percent market share beyond the top three providers.

Kevin Mitchell, principal analyst of Infonetics Research, expects that Vonage's share over the long term will decline as incumbent telcos grow their respective subscriber shares on the back of triple-play services. "They [Vonage] are a single play in a triple play world and are at a long term disadvantage," Mitchell told VoIPplanet.com. "Short term, they'll likely be fairly stable sharewise."

Overall, the North America VoIP services market is expect to grow dramatically over the next five years. North America VoIP services revenues in 2004 were $1.24 billion according to Infonetics, with 93 percent of the market in the US and 7 percent in Canada. By 2009, Infonetics predicts VoIP service revenues will hit $23.4 billion.

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