News

Analysis: Majority of Broadband Homes VoIP by 2010

6/13/2006 5:54 AM Eastern

Voice-over-Internet-protocol service will grow to reach 62% of U.S. broadband households by 2010, according to new estimates by analyst firm IDC.

The Framingham, Mass.-based analyst firm is projecting exponential growth in the next four years for VoIP, with connections rising from 10.3 million now to 44 million in 2010.

That means VoIP will be the main voice service in 62% of broadband households -- another strong incentive for broadband Internet providers to expand their service portfolios to include voice.

The VoIP growth will be driven in part by the fact that consumers are becoming comfortable with VoIP as an alternative to traditional switched-telephony service, and the fact that VoIP is becoming simpler to install and use, according to IDC. The potential for future tie-ins with mobile service will also increase its appeal to consumers.

"There is still much to do in terms of creating a product that catches the attention of Main Street," said Will Stofega, research manager for IDC's VoIP-services program. "For those that are able to tweak their service offering to fit the ever-changing tastes of the mass market, the potential growth opportunity is huge."

September