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Jul 1

Report: VoIP winning fixed line market share, with room for substantial growth

Despite some fits and starts over the past decade, the global fixed-line VoIP market is expected to reach $40 billion a year in revenues by 2015, with more room for growth as it continues to supplant traditional voice models.

A new report from Point Topic said VoIP has more than 120 million subscribers worldwide and saw growth of 12.6 percent in 2010.

"The growth of VoIP has been bumpy but shows signs of acceleration," said John Bosnell, senior analyst at Point Topic. "VoIP has all the hallmarks of a classic substitution commodity. This is where customers look at the service that is delivered by a new product and decide that it meets, or exceeds, the service they are currently receiving and when it is appropriately priced they will switch from one to the other."

In areas where an aggressive supplier base has made VoIP available to a large population base, the VoIP transition has been seamless and the rewards have been significant, he said.

"France has been something of a test bed for VoIP," Bosnell said. "Over the last decade, the providers have been rewarded with significant take-up," added Bosnell. The result has been a rapid shift away from PSTN, in France, with some 50 percent of telephony traffic that originated on fixed networks in 2010 actually starting on a VoIP phone.

"We expect there to be over three quarters of a billion fixed line broadband subscribers by the end of 2015, in theory all of them are targets for VoIP," said Bosnell.

Source: FierceVoIP