Thursday, May 04, 2006

VOIP in the WAN

We saw that VOIP has grown rapidly within organization LANs. It is also making inroads in the WAN. This has led Verizon to cut VOIP prices in response to diminishing profits, caused in part by competition from VOIP service providers like Vonage.

Market research firm TeleGeography reports that 5.4 million U.S. households now subscribe to a VOIP service. This is up from 2.7 million one year ago. More worrisome to Verizon -- 2.8 million households have cancelled their local phone lines and are using cable-based VOIP. TeleGeography projects that by year-end 2010, VOIP will have attracted over 21 million subscribers--nearly one in five of all U.S. households.