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Pure-Play VoIP Providers Expected to Consolidate in 2007

7:30 am on January 29, 2007 | Category: Business, Corporate, VoIP

Telecom analysts are expecting a major consolidation of pure-play VoIP providers this year, as dozens of small providers throughout the United States merge together in hopes of better targeting the business telephone market.

â€œA lot of (VoIP) companies have sprouted up around the country,â€ commented Scott Chandler, who is a managing member of Franklin Court Partners. â€œYou’ll see that stopping (this) year as the consolidation happens.â€

The Yankee Group, meanwhile, is predicting that the small to medium-size business VoIP market will grow from under $200 million in 2006 to almost $1.3 billion by 2009, as pure-play providers increasingly adjust their marketing strategies towards enterprise customer.

Mergers and acquisitions are expected to put pure-play VoIP carriers like Vonage in a much more serious competitive position against the digital phone offerings of telephone and cable operators.

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