Fixed VoIP to Grow at 6.46 Percent CAG Rate Between 2012 and 2016

By Frank Griffin December 31, 2012

Several reports have highlighted the positive outlook for VoIP services for the next several years, primarily due to the increase in broadband services around the world.

The cost saving measure of Voice over Internet Protocol (VoIP) is undeniable for businesses, and the only thing limiting the service in some locations was the lack of reliable broadband services. Access to broadband will give them many of the tools VoIP makes available to individuals and businesses alike.

The increase is also due to better services and products that are available for VoIP. Prices for the equipment have decreased in recent years, while services have increased. The addition of Cloud VoIP gives organizations of all sizes communication suite packages previously only available to large enterprises.

Smaller investments and better services will keep the market growing, but the industry still faces perceived issues with security. The industry is also confronting issues with tax compliance in its wholesale providers sector, which can limit some of the growth it expects in the future.

VoIP is delivered primarily over cable and Public Switched Telephone Network (PSTN), as well over wireless, satellite or power lines. The service is much cheaper than traditional switched-circuit telephony system, and it offers an alternative source of communication.

The service is generally packaged along other communications or entertainment packages for consumers.

In 2002, there were only 121,000 VoIP subscribers generating $5.4 million annually in the U.S., and by 2012, almost 30 million subscribers generated about $15.4 billion in revenue; the global revenue generated in 2012 is around $65 billion.

As broadband becomes available more widely around the globe, it is estimated it will see similar increases. While there are many companies offering VoIP services, the market is dominated by very few large companies.

In the U.S., Comcast, Time Warner Cable, Cox Enterprises and Vonage are the dominant players. Cable companies have the upper hand because of the bundled packages they offer to their customers.

The next stage in this industry is mobile VoIP; the next generation of 4G and LTE wireless data network will improve the quality and reliability of the network and thereby increase the mobile VoIP market.

Edited by Braden Becker

TechZone360 Contributing Writer

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