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Cable Companies Impact North American VoIP Industry

5:30 am on January 19, 2006 | Category: Business, VoIP

One of the most notable recent trends in North Americaâ€™s VoIP market is the growing market share held by cable companies.

US cable giant, Time Warner has seen their overall market share rise to 25% over the past year, up from 21% in the first quarter of 2005. This promising increase in market share has prompted numerous other cable providers throughout the US and Canada to launch their own digital phone VoIP services.

This wave of pre-established brand names hitting the market with deeply discounted phone services has meant a slight decrease in market share for current leader, Vonage. This is likely due to the fact that most customers would rather buy a service from their existing cable provider than start an account with a whole new company. Hence, the advantage of a pre-built brand is giving cable companies the edge, even though Vonage offers a much better deal.

Local phone companies are also likely to feel the pinch of increased competition as cable TV providers enter the residential phone market.

According to US research firm, Infonetics, the total annual value of North Americaâ€™s VoIP industry will reach $23.4 billion by the year 2009.

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