VoIP subscribers up dramatically

Looks like VoIP adoption in the U.S. is exceeding even some of the experts’ expectations.

Looks like VoIP adoption in the U.S is exceeding even some of the experts’ expectations.

Recently, research firm Telegeography released its quarterly market survey results. In the report, the firm says:

“U.S. VoIP service providers continued to add subscribers at a torrid pace in the third quarter of 2005. The number of voice-over-broadband subscribers increased 33% in the second quarter, from 2.7 million to 3.6 million. Voice-over-broadband subscribers have grown 400% since the third quarter of 2004, when only 714,000 VoIP lines were in service.”

And for those who think voice is free (like your newsletter authors would like to believe), it also appears that service-provider VoIP revenues are also on the rise. According to the Telegeography study, “quarterly voice-over-broadband revenues grew from $220 million in the second quarter to $304 million.” Compared to the third quarter of last year, that represents growth of 473%.

Major players still include Vonage, which leads the pack in market share. But the cable companies are, according to the study, “impressive.” For example, Time Warner Cable, the number two provider behind Vonage, “was the fastest growing cable VoIP provider in each of the last three quarters… [It] added 240,000 net subscribers in the third quarter, and achieved growth of 39%, following on 65% growth in the second quarter.”

Cable companies in general are the big winners. The report says multiple system operators “accounted for exactly one-half of total subscribers at the end of the quarter, compared with 35% one year ago.” “Enhanced Service Providers” such as Vonage and 8×8, accounted for 38% of subscribers, and telecommunications carriers – such as AT&T, Verizon and Primus – accounted for 12% of voice-over-broadband subscribers.

Special thanks to Telegeography for sharing their data. For more information on the survey, please contact the company.