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VoIP Falling Short of Expections

New data suggests that voice-over-IP is not finding the traction in the consumer sector, but promising signs remain.

Dallas, TX–Only two percent of broadband households currently subscribe to a VoIP service, according to Residential Voice-over-IP: Analysis and Forecasts (Second Edition), a forthcoming industry report from Parks Associates.

This number is lower than expected considering that at the end of 2002 nearly one-third of broadband households expressed a high interest in subscribing to VoIP services.

“Historic consumer data indicate that the motivation for consumers to subscribe to VoIP is there but perhaps not the means or opportunity,” said William Cheek, an analyst with Parks Associates. “To attract new customers in 2005, service providers will need to implement a strategy that includes continued aggressive rollout plans and more targeted awareness and educational campaigns.”

On the positive side, the forthcoming report found that the VoIP market increased by more than 500,000 subscribers in the past year alone.

“We’re witnessing an early shift toward VoIP as one component of consumers’ digital service subscriptions,” Cheek said. “Operators on both the cable and the telco sides have a significant opportunity in 2005 to add to their VoIP customer bases, provided that they adequately demonstrate and then deliver high-value, high-quality VoIP.”

For more information, contact Parks Associates at 972.490.1113.