After a slow start, cable companies have begun to dominate the voice over Internet protocol (VoIP) market, which will reach $10 billion in annual revenue in 2011, according to the TIA 2008 Telecommunications Market Review and Forecast.

The 400-page report notes that there are a number of different types of VoIP service providers, ranging from those such as Skype that provide free PC-to-PC calling, to cable operators, to telephone companies such as AT&T and Verizon. Internet companies like Yahoo are also expanding their instant messaging services to include voice. In 2007, more than 80 percent of cable telephone subscribers were using VoIP services, TIA reports.

Other highlights of the market:

• In 2006, cable companies gained more than 4 million VoIP subscribers. By 2007, rapid growth brought the total to 11.6 million, and by 2011 TIA projects there will be 21.8 million cable VoIP subscribers.
  
  
• The number of VoIP subscribers is expected to grow at a compound annual rate of 20.2 percent through 2011, reaching 33.2 million.
  
  
• VoIP revenue has grown from $25 million in 2003 to $200 million in 2004, $1.4 billion in 2005 and $5 billion in 2007. The report projects revenue to increase 19.2 percent on a compound annual basis through 2011.
  
  
• TIA expects local telephone companies to gain market share as they begin bundling VoIP with their new video services, in addition to marketing VoIP outside their home territories to bolster subscriber counts.
  
  
• Business use of VoIP is becoming a factor in the market, with revenue projected to grow to $14.2 billion by 2011.

Hundreds of companies use TIA’s comprehensive annual market forecast to plan their budget allocations, target marketing expenditures, and focus R&D. The report, which features more than 450 tables and figures, covers wireless, wireline, equipment and international segments of the ICT industry.

To order your copy in print format or on a CD-ROM, go to http://www.tiaonline.org/market_intelligence/mrf/, e-mail marketreview@tiaonline.org or call +1.703.907.7074. Do it today!

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