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2.7 Million VOIP Subscribers in the United States

prostoalex writes "There are 2.7 million paying VOIP customers in the United States, according to research by TeleGeography. The whole industry will generate $220 million this year, with Vonage leading as far as customer number."

14 of 116 comments (clear)

  1. What is even more interresting... by nordicfrost · · Score: 4, Interesting

    ...is how many "unpaying" VoIP there are in the US. I, for one, use services that are free, like Skype, to communicate with friends. Skype does have a payment service, but along with my friends I never need it. We kinda fly under the radar.

    I can't imagine that there are just a few of us that use systems like iChat, Skype etc. for voice communication.

    1. Re:What is even more interresting... by caseydk · · Score: 4, Interesting


      Yeah, I was thinking of that, but even more important:

      220 million/year / 2.7 people = less than $100/person/year

      Seems like pretty low revenue/user. I hope the margins are good.

    2. Re:What is even more interresting... by timeOday · · Score: 2, Interesting
      ...is how many "unpaying" VoIP there are in the US. I, for one, use services that are free, like Skype, to communicate with friends.
      It's not direct IP-to-IP calls that cost, it's the IP-to-POTS bridge.

      That's why it's so annoying that Vonage locks down your IP telephone adapter, so you cannot receive direct IP calls from outside the Vonage network.

      I think they're trying to create an expectation that VOIP should incur a charge over and above normal IP services. There's no good reason for that.

  2. Market Ready for High Quality Now? by ZX81 · · Score: 2, Interesting

    So, now that people are starting to take up VoIP, do you think that people will start to look for the best quality or continue to go for the cheapest price.

    At our company (don't worry we only deal with companies, so this isn't an ad), we have a new routing system that does Least Cost Routing, but with weighting. This allows us to weight providers higher or lower based on their performance/quality.

    While this increases our prices slightly, it does mean that we have pretty good QOS.

    Do you think that as the market progresses this will be something that consumers get or will it always be the domain of large enterprises?

    --
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  3. I just can't let go ... by krygny · · Score: 3, Interesting

    ... of the ol' hard wired POTS phone in my kitchen. I hardly ever use it, but it was the only one I had during the blackout here in the northeast a couple years ago. The cell system had power, but getting a line was iffy.

    --
    Research shows that 67% of those who use the term "research shows", are just making shit up.
  4. Re:911? by Albanach · · Score: 2, Interesting
    Only if they ditched all their other phones.

    Most houses with VoIP probably still have their landline (for the DSL they use the VoIP over) plus the one, two or three family mobiles.

    Yes,a 911 service needs to be established, though there should be some onus on governments to help here because it's an international problem. If I'm travelling with my laptop my VoIP number comes with me and knows not if I'm in the States, Canada or Europe. Why can't we click a world map to say where we are and give the operators a standard interface so 911 calls can go to the appropriate location?

  5. These aren't bragging numbers by TuxPaper · · Score: 3, Interesting
    I see a few posts bragging about these numbers. Stop now before you embarass yourself.

    For example, the biggest VOIP company in Japan, Softbank has about 4.4 million VoIP customers. Yes, that's just one of the VOIP companies in Japan. (Source: cabledatacomnews.com)

    I'm not here to brag about Japan. I'm sure S. Korea and China have impressive, if not larger numbers of VOIP users.

  6. VoIP "pitfalls" by SuperDuG · · Score: 3, Interesting
    I was a Vonage customer for almost a year and a half. I enjoyed the service, but did realize that I was paying for 500 minutes whether I used them or not (just like a cell phone).

    Next problem is I moved, and I found a better deal through my phone company. You may want to check and see what deals your current phone provider has before you jump on the VoIP wagon.

    VoIP is an excellent solution for people who are on the phone long distance for more than just your usual call to your relatives to check up.

    I looked at my useage and already had a cell phone. I must say, in the grand scheme of things that VoIP was not a solution for me any longer.

    Canceling Vonage takes close to an act of congress. You have to call their cancellation center (forget that it's only open 7.5 hours a day monday - friday) then you have to sit on hold (forget the fact that it's like any other call center that you wait a fair amount of time on hold) and then you are given a Return number. Also you are given a $40 charge to your credit card. You have to scrounge up the power supply, ata box, phone cord, ethernet cord, and manual. If you're like me and you know that you'd eventually have to return this stuff, you kept all that in a box in the closet. If you don't return everything, you don't get the refund.

    I was very impressed with Vonage until the very end in which they would not let me cancel my service until I heard a song and dance and agreed that I didn't want their service any more.

    If you have a cell phone with long distance and rarely ever need to make a lengthy long distance phone call, VoIP ain't it.

    --
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  7. Opposite experience by mgkimsal2 · · Score: 2, Interesting

    Due to odd circumstances, I've had 3 vonage accounts in the last year, 2 of which I've had to cancel. It's never taken me more than 15 minutes to cancel, and there's no song and dance or credit card charges.

    The differences may be that I'd bought my own equipment from bestbuy and sam's club already, so there was no issue of returning anything. They just shut off my number - nothing more to it. They did ask why I was cancelling, I told them, and that was it.

    I do agree that in some cases, it's not worth it for some people - paying for the 500 minutes whether you use it or not. But, let me put some of my numbers to you.

    I have a cable modem - roughly $40/month. I'm using that no matter what for internet access. Adding an extra $15/month in vonage on top of that means phone/internet is $55/month. Yes, I'm paying for '500 minutes even if I don't use them' (a vonage 'rollover minutes' plan like cingular would be great).

    However, compare that to my local verizon POTS. It's close to $50/month *before any other charges*. Start adding on all the per minute fees for calls, then extra taxes on top of that, and it's crazy.

    Our phone usage pattern is probably different from most - we've got family both in UK and Australia. Verizon's *best* deal was 10 cents/minute to Australia - Vonage is 4 cents, which includes taxes (verizon adds on taxes later). And to get that wonderful 10 cents per minute rate I have to sign up for 'international caller' plan at an extra $4.99/month.

    Yes, the quality of the Vonage line isn't as solid as the POTS. Occasionally there is static or a really bad connection. I'd say that's less than 1 in 10 calls. But for a 60+% savings, it's definitely worth it in our case.

  8. Why this is not sustainable... by cardpuncher · · Score: 4, Interesting

    "Operator, I'm trying to call my elderly mother, but there seems to be a fault..."

    "Sir, you'll have to have your mother run traceroute and then call us back."

    "How do I call my mother to tell her and how does she run traceroute?"

    "Perhaps you can download the instructions from our website and mail them to her?"

    1. Re:Why this is not sustainable... by SeaFox · · Score: 2, Interesting

      I really don't know. However, if I have VoIP service from Company A running over broadband from Company B using wires provided by Company C and wish to communicate with another party with services from D, E and F, then how do I identify which of (A, B, C, D, E, F) might be required to resolve the problem - and if the problem is with one or more of (D, E, F), with whom I have no contractual relationship, what incentive is there for them to fix it?

      This is the joke of VoIP service, and something they don't tell you when you sign up. Technically NONE OF THEM ARE!

      Vonage can only solve problems on their servers, if the issue is with your broadband provider, you can call them and talk to them about the issue. But keep in mind your cableco probably offers phone service of it's own in competition to VoIP, they measure quality of service from the standpoint of "your internet connection is used for web surfing", which doesn't require as robust a connection as VoIP or XBox Live when it comes to latancy.

      They might have an issue with latancy they will try to improve, but they wont guarantee you Vonage will sound crystal clear. If you're having trouble and they think your connection is "fine", you're SOL. They will probably try to sell you on their own phone service.

      What you have to remember is when you get digital phone service from a cableco (not VoIP tied to your cable modem, but where an RSU is mounted on the outside of your house) they have legal responsibilities that don't apply to cable modem or cable TV service to make sure the service (and 911) are working to decent standard (like SBC would have to). Since this standard doesn't exist for your broadband internet, and they aren't recieving any revenue from your Vonage usage, they aren't that bothered by your sercice being up to snuff for it. The fact there are few choices in broadband internet service for most people helps this.

  9. Re:Something doesn't add up. by mattmacf · · Score: 2, Interesting
    From TFA: TeleGeography found 2.7 mln US VOIP subscribers nationwide in Q2 2005, compared with just 440,000 in Q2 2004. The revenue generated from consumer VoIP services remained relatively small, at $220 mln

    The $220 million figure may be derived from just Q2 sales figures. Using this, the number doesn't seem as suspect.

    $220 million / 2.7 million users = $81.48 / quarter
    $81.48 per year / 3 months = $27.16 / month

    Given prices for VoIP being between around $20-40/month, an average of $27.16 sounds about right.

    --
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  10. Re:Something doesn't add up. by bobcat7677 · · Score: 2, Interesting

    Keep in mind that pretty much the only services that charge monthly fees are the ones that have PTSN access and a PTSN # packaged in the service. I have 3 different VOIP providers configured in my Asterisk switch for different things. Only one of them (Voicepulse Connect) charges me a monthly fee...and that's just because my incoming number is on that account. The others just charge based on my usage of the PTSN (at
    In the end though I'm just playing Devils advocate to a degree. I agree the numbers appear to be skewed. With all the VOIP providers out there, there has got to be more then 2.7 million customers. Like some of my accounts, many of them may not be generating significant revenue, but then VOIP was never meant to be a cash cow service.

  11. VOIP Buster -- why pay for outgoing voip? by OsirisX11 · · Score: 2, Interesting

    It is free after the first euro. then its unlimited free international calling, i love it. :)
    http://www.voipbuster.com/