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VoIP in the US - Industry Market Research Report

  • April 2017
  • 34 pages
  • Ibisworld
Report ID: 565590

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Raised voice: The expansion of 4G data networks will propel subscription growth

VoIP in the US

Voice over Internet Protocol (VoIP) technology converts voice communications into digital data packets transmitted using a high-speed (broadband) connection. Explosive growth since its commercial introduction in the late 1990s began to stabilize in 2011 as residential customers cut home phone services, shifting instead to wireless devices. The rapid adoption of broadband internet strongly drove revenue growth in the past five years. Meanwhile, the number of mobile internet connections rose at an even faster rate during the same period, as consumers continued to substitute wired phones with mobile devices. VoIP providers quickly adjusted by offering services for the mobile market.

Nevertheless, providers continue to face fierce competition from wireless phone carriers that are often larger, better capitalized and are long-time trusted providers. VoIP services are less expensive to implement than traditional switched-circuit telephony, with businesses projected to gravitate toward the more cost-effective solution. The increasing stability of internet connections is expected to alleviate fears about VoIP quality and reliability, a hurdle to adoption by the business segment.

Industry participants provide Voice over Internet Protocol (VoIP) services to consumers, businesses and government organizations. VoIP technology converts voice signals into digital data that is transmitted using the internet. This industry also includes VoIP providers that bundle their services with internet, cable-operated VoIP, and operators that resell VoIP services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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