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VOIP's Residential Growth in North America
by
Mark Evans
on Thu 21 Jul 2005 07:58 AM EDT | Permanent Link
Om Malik offers up his usual keen insight into market statistics being offered by Frost & Sullivan about the North American VOIP market. Frost & Sullivan suggests residential revenue will hit $4.07-billion by 2010 from $295.1 million in 2004. Om does some math, and comes to the conclusion average revenue per subscriber is $18 a month - making VOIP "nothing but a cheap tack-on service. Unless you are bundling VoIP service with cable or DSL service, or packaging it as a part of some triple-play offering, there is little chance of making money in this game". Ouch! Perhaps the VOIP market's Achilles' Heel is starting to reveal itself with the bottom line being there is little money to be made by offering the service. If this is true, it spells bad news for Vonage and its IPO aspirations, but great news for Skype, which is leveraging the growing demand for ultra low-cost VOIP services.
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