JupiterResearch forecasts that by 2010, 20.4 million U.S. households will subscribe to a VoIP-based broadband telephony service, a dramatic increase from the 1.2 million subscribers in 2004.
JupiterResearch's report entitled, "U.S. Broadband Telephony Forecast 2005 to 2010," contains detailed findings including predictions on how cable companies are well positioned to dominate this market, while offering advice for independent providers, such as Vonage and Packet8.
"Both cable operators and startups are marketing services, which continues to increase consumer awareness," said Joe Laszlo, Research Director at JupiterResearch. "While providers face regulatory and competitive challenges, the message of cheaper, more feature-rich phone service is attracting consumers," added Laszlo.
JupiterResearch defines broadband telephony as VoIP-based services offering the ability to make and receive calls via the Internet from anyone with a phone. PC-based systems, such as Skype, are viewed by JupiterResearch as niche players in the U.S. and are, therefore, not included in this forecast.
"With the current abundance of broadband telephony offerings, the market has spurred competition around price and features," said David Schatsky, Senior Vice President of Research at JupiterResearch. "Although most consumers still do not know what VoIP stands for, they do increasingly know that if they have broadband they have alternatives for getting phone service," added Schatsky.