According to the study, growth in cable-based VoIP will drive the market going forward. After more than 10 years in the telephony business, cable operators have finally struck a chord with consumers, as demonstrated by the acquisition of about 3.6 million new VoIP telephony customers in 2006.
“Aggressive marketing of double- and triple-play options, coupled with troubles for over-the-top VoIP providers, have given cable MSOs the upper-hand in the broadband telephony market, “said Douglas Williams, Broadband Analyst at JupiterResearch. “The forthcoming push into the wireless market will give cable providers the flexibility to provide whatever multi-play option a consumer may want.”
The sufferings of Vonage, underscored by its patent-infringement case with Verizon, indicate the over-the-top VoIP market is increasingly at risk of becoming irrelevant. Growth of broadband connectivity, greater availability of VoIP services, aggressive promotion of bundled packages, and more diverse offerings at a lower cost could each play a significant role in the eventual demise of the single-play VoIP market.
Over-the-top VoIP providers currently add subscribers on a net basis, but reliability and service quality offered by cable providers threatens future growth opportunities for single-play providers,” said David Schatsky, President of JupiterResearch. “Additionally, the relative difference in price points for voice service is declining as cable providers drop prices and over-the-top providers have added regulatory and cost-recovery fees.”
