VoIP Growth

VoIP Growth is Busting Out All Over!

I should be no surprise that more people every day are turning to VoIP telephone service as there first choice for person to person communication.  The number of residential customers choosing the VoIP solution more than tripled to 4.2 million in 2005 and that does not include PC-to-PC services.

Projections point to VoIP market size growth to hit a compound annual growth rate of 43.9 % through 2009 when the number of users will hit the 18.0 million mark.

The growth curve for VoIP service providers is shooting almost straight up.  There was an eightfold increase from 150,000 users at the end of 2003 to 1.2 million users at the end of 2004. VoIP traffic keeps running at breakneck speed.

What makes residential VoIP service so attractive to consumers?  There are a number of factors, including the lure of inexpensive voice communications. To this point VoIP has not had to contend with the variety of regulations and taxes that are faced by traditional telephony.  That's how VoIP providers are able to offer those attractive low prices.

Perhaps the key to the growth of VoIP market size is the increasing number of broadband Internet subscribers.  Not only does VoIP work best over a broadband connection the utilization of this existing infrastructure lowers the cost of providing the service.

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The U.S. broadband market has had an exciting breakout.  Growth as exploded from 4.5 million subscribers in 2000 to 41.3 million subscribers in 2005.  It's not stopping there as it is expected to grow an additional 28 million to 69.2 million users by 2009.  That's an eye opening 13.8% compound annual increase.

New users are sold by the range of features included with VoIP.  Most of what VoIP can offer is just not available as part of the traditional phone company's basic services.

VoIP customers love to be able to send subscribers emails when they receive voicemail messages and integrating personal applications such as address books has been a winning feature.
 
VoIP broadband service revenue has grown as the number of residential VoIP subscribers has increased. Revenue increased leaped from $25 million in 2003 to $200 million in 2004.  It then broke the $1.1 billion barrier in 2005.

VoIP Revenue is expected to increase 46.7% on a compound annual rate through the year 2009 when it will reach $5.1 billion.

This success with residential users has prompted VoIP carriers to begin moving into the small-business market.  For their small business customers they are offering to bundle a number of lines and minutes for a flat price, or combine VoIP with broadband services.

Even though there has been a high rate of VoIP growth, all projections indicate there is no end in sight. 

 "VoIP Now! This Quick & Easy Guide to Internet Telephoning" explains everything....

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