ISP-Branded VoIP Services Increase Market Share

7:00 am on February 5, 2006 | Category: Business, VoIP

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VoIP services provided by ISPs have recently taken the lead in Europe’s internet telephony industry, with a 51.2% market share.

Skype, which previously held the top position has lost ground to these services, with a share of 45% of total minutes used. Vonage, meanwhile holds less than 1% of the market, while all other VoIP providers have 3.5%, combined.

A similar situation is taking shape in North America, with cable and ISP companies now occupying 53% of all VoIP minutes. Vonage is a clear but distant second with a 21.7% share, while Skype trails with 14.4%, and all others account for 10.9% of usage.

The increasing trend toward ISP is likely due to the benefits of bundling with other services like internet access and cable TV. Customers are much more likely to try a service if it’s provided by a company that they already deal with and trust. Obvious examples of ISP-branded VoIP services include Shaw Cable in Canada and Time Warner in the US.

“ISP-branded VoIP is, and will continue to be, a key factor in driving revenue growth and triple-play success for service providers,” says senior media research analyst, Boyd Peterson, of the Yankee Group.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock