Cable Phone Services Continue to Outsell Pure-Play VoIP

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Cable Phone Services Continue to Outsell Pure-Play VoIP

6:45 am on August 14, 2006 | Category: Business, VoIP, Telecom Services

The number of VoIP telephone subscribers in the United States grew by 21% in the second quarter, reaching a total of 6.9 million at the end of June, according to a new study by TeleGeography.

This marks a 153% increase in subscribers compared to the middle of 2005. Revenue, meanwhile, was up 173% in the same period, coming in at $607 million for the second quarter.

The bulk of this growth has belonged to cable companies, such as Comcast and Time Warner, which are slowly but surely taking market share from pure-play VoIP providers like Vonage and Packet8. Cable carriers now account for 60% of VoIP subscriptions, compared to 52% in mid-2005, while pure-play providers serve the other 40% of U.S. customers.

“Even more significantly, (cable companies) accounted for 68% of new subscribers added in the second quarter, a sign that (their) aggregate consumer VoIP market share will continue to grow in coming months,” the TeleGeography report said.

Although cable companies entered the VoIP market considerably later than their pure-play counterparts, “their superior financial resources and established customer relationships have provided them with a significant marketing advantage,” the report went on to say.