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VoIP Surges in Home Telephone Market

According to Red Herring and ChangeWave Research, "Voice Over Internet Protocol (VoIP) appears to be a popular alternative to traditional home telephone services. But just how quickly are consumers adopting this technology? And which companies are winning and losing share in the VoIP market? During the week of June 28 � July 5, 2005, we surveyed 1,901 ChangeWave Alliance members on their personal experience with VoIP technology and service providers. We note that the ChangeWave Alliance is primarily composed of early technology adopters. Bottom Line: The survey results show home VoIP use surging in both the local and long distance telephone markets. A total of 14 percent of respondents now report they use VoIP at home � double the amount in our September 2004 survey, while another 22 percent say they plan on using it at home within the next year. Importantly, VoIP is no longer considered a supplementary home phone service � half of current VoIP users now report they use it as their primary or only home telephone service. Another positive indicator was found among respondents who report they are likely to change their home long distance providers in the next six months. Within this group, three-in-ten (30 percent) say they plan to switch to Stand Alone VoIP � 9 points more than previously."

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