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VoIP in the US Industry Market Research Report from IBISWorld has Been Updated

December 25, 2012

Regulations and the dominance of companies like Google threaten the industry, but the expansion of mobile broadband networks will open up new avenues for VoIP growth. For these reasons, industry research firm IBISWorld has updated a report on the VoIP industry in its growing industry report collection.

Los Angeles, CA (PRWEB) December 24, 2012

Voice over Internet Protocol (VoIP) technology uses data networks (i.e. the internet) rather than traditional phone lines for home phone service. Explosive growth from 2007 to 2009 moderated in 2010 as residential customers, looking to cut expenses, abandoned home phones altogether in favor of mobile phones. IBISWorld expects VoIP industry revenue to grow at an annualized rate of 16.7% over the five years to 2012, including a 14.2% increase to $15.4 billion in 2012. Driving the astronomical revenue growth of the VoIP industry in the middle part of the past decade was the incorporation of digital voice into bundled cable TV and internet plans. “For families that could afford all three services but felt that a dedicated landline was unnecessary, VoIP adoption was swift,” says IBISWorld industry analyst Kevin Boyland. “The number of residential VoIP subscribers more than doubled between 2007 and 2009.” However, VoIP adoption slowed in the recession’s aftermath, with major cable VoIP providers reporting slower subscriber growth rates in 2010 and 2011.

Though businesses have been slow to adopt VoIP, this sluggish growth will likely pick up over the next five years. VoIP is cheaper to implement than traditional switched-circuit telephony, and businesses will eventually gravitate toward the more cost-effective solution. “The increasing robustness of the internet will allay fears about VoIP quality and reliability, another major hurdle to adoption by the business segment,” adds Boyland. The VoIP industry is moderately concentrated, with the four largest VoIP operators accounting for a significant share of revenue. Concentration in this industry has increased over the past five years, reflecting the effectiveness with which cable providers have been able to acquire customers. Notably, the moderate level of concentration within this industry does not reflect the high degree of market power that the largest firms (Comcast, Time Warner Cable, Cox Enterprises and Vonage) command. Cable-based VoIP providers have been able to quickly add subscribers to their services because of bundled service agreements and large, established subscriber bases. Cable-based VoIP providers will remain the largest players in this industry so long as their core product, cable TV, remains popular with consumers.

VoIP providers are also expected to increasingly turn their attention to mobile applications over the next five years. The robustness and reliability of existing and planned 4G wireless data networks will improve mobile VoIP quality and will likely increase demand for this industry’s services. New opportunities in the mobile VoIP market are expected to lead to growth in the number of industry enterprises over the next five years. For more information, visit IBISWorld´s VoIP in the US industry report page.

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IBISWorld industry Report Key Topics

Industry participants provide Voice over Internet Protocol (VoIP) services to consumers, businesses and government organizations. VoIP technology converts voice signals into digital data that is transmitted using the internet. VoIP is primarily delivered over the Public Switched Telephone Network (PSTN) and cable infrastructures but can also be provided wirelessly or by satellite or power lines. This industry does not include the resale of VoIP services.

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About IBISWorld Inc.

Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/12/prweb10267567.htm


Source: prweb



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