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Global VoIP Service Revenue Has Doubled

VoIP service revenue roughly doubled in North America, Europe, and Asia Pacific from 2004 to 2005, and is expected to continue booming at least over the next 5 years, according to Infonetics Research.

A combined $120 billion will be spent on VoIP services between 2005 and 2009 in the 3 regions. "Businesses around the world are migrating to IP for increased functionality, greater flexibility, improved productivity, and the potential of growing revenue through better customer service," said St�phane T�ral, principal analyst at Infonetics Research.

"VoIP services continue to pick up fast in North America and in many parts of Europe, particularly in central and Eastern Europe, where small businesses have a strong appetite for business trunking, IP Centrex, and VoIP VPN services," T�ral continued. "In Asia Pacific, VoIP service revenue about doubled that of North America and Europe in 2004, and continues at a blazing pace. China will likely emerge as a major VoIP business market in the coming years because the Chinese government is encouraging carriers to accelerate the migration to IP Centrex and IP PBX from their existing TDM Centrex."

Report Highlights include:

- Between 2005 and 2009, VoIP service revenue will grow from:
$2.6 billion to $13.3 billion in North America
$2.3 billion to $12.7 billion in Europe
$4.2 billion to $12.9 billion in Asia Pacific

- Percent of VoIP service revenue coming from residential vs. business customers:
51 percent in North America
72 percent in Europe
83 percent in Asia Pacific

- The number of worldwide VoIP subscribers is expected to almost double 2005 to 2006, when it will top 47 million.
- Vonage leads in North American residential/SOHO VoIP subscriber market share, but is down from 34 percent in 2004 to 27 percent in 2005, resulting from fierce competition from cable MSOs, traditional telcos, and low-cost new entrants.

- Cable companies continue pushing to increase VoIP subscriber share: Cablevision and Time Warner Cable each have double-digit share and combined have 39 percent of all North American residential VoIP subscribers.

- AT&T, Comcast, and Cox are the only other providers with North American VoIP subscriber share greater than 3 percent.

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