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North American VoIP Forecast

North American VoIP service revenue will balloon to $23.4 billion in five years, up from just $1.24 billion in 2004. So says Infonetics Research in its latest five-year forecast for the technology, predicting a $62 billion windfall through 2009. But while pure VoIP operator Vonage retains the top spot in the burgeoning market, Infonetics says incumbent carriers are getting wise to the technology and poised to claw back significant market share.

"Vonage leads the residential and SOHO VoIP subscriber market, but their share is the lowest it's been in nine months due to cable companies making gains," said Infonetics' principal analyst Kevin Mitchell. "Cablevision and Time Warner Cable each have double-digit share and combined have over 40 percent of all North American residential VoIP subscribers. Time Warner Cable is gaining subscriber share and they only sell within their footprint, not nationwide like AT&T and Vonage."

Vonage controlled 32 percent of the North American residential/SOHO VoIP market in the second quarter, followed by Time Warner cable at 25 percent and Cablevision at 19 percent. The technology is far more popular in the US than its neighbour to the north, which generates just 7 percent of North American VoIP service revenue.

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