U.S. VoIP Revenue Forecast

June 21, 2006

U.S. RBOCs have been losing 150,000 subscriber lines per month so far this year. At the same time, Voice over IP (VoIP) service providers are adding about 100,000 subscribers per month. It appears that most of these — about 100,000 per month — are being picked up by new Voice over IP (VoIP) service providers. The balance of local service subscription losses — about 50,000 — are moving to wireless-only plans or canceling their secondary household lines.

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TeleGeography predicts that VoIP service providers will capture 22 percent of all local exchange carriers’ existing customers, contributing to a cumulative loss of $18.2 billion in local service revenues between 2006 and 2010. Loss of revenues from access charges and consumer long-distance services will result in several billions of dollars of additional damage to traditional telephone service providers.

The analysis above is drawn directly from TeleGeography’s U.S. VoIP Research Service.

The U.S. VoIP Research Service has been discontinued. For a full list of TeleGeography’s research services, please visit http://www.telegeography.com/research-services/.