Home  › Marketing › Strategies

VoIP To Hit 12.1 Million US Households By 2009

  |  October 7, 2004   |  Comments

Study finds 18-24 year olds more likely to choose wirelessover VoIP.

Broadband Telephony, better known by the acronym VoIP, is set to grow dramatically over the next five years according to new research. A Jupiter Research report, "Broadband Telephony: Leveraging Voice Over IP to Facilitate Competitive Voice Services" forecasts VoIP adoption will grow from only 1 percent of all US broadband households in 2004 to 17 percent by 2009 (representing 10 percent of all US households).

The growth marks a meteoric rise for the emerging technology which, at the end of 2003, had a base of almost zero. Some 400,000 households will use VoIP by the end of this year. Usage is forecast to balloon to 12.1 million by 2009.

Percentage of US Broadband Consumers
PC-to-PC voice chat or IM 11%
Voice chat in multiplayer PC game 4%
Voice chat in multiplayer console game 3%
VoIP as primary phone line 3%
Voice input on PC 2%
Voice chat with customer support via PC 2%
VoIP as second or third phone line 2%
PC-to-phone call 2%
Used none of these in the past six months 56%
I have never heard of these services 25%
Source: JupiterResearch

That said, VoIP has far to go based on current perceptions and usage. Only 3 percent of US broadband consumers report they used VoIP at least once in the past 6 months as a primary phone line. Two percent say VoIP is used as a second or third line. Over half of broadband consumers (56 percent) used no IP Voice Applications at all in the past 6 months.

Price may not necessarily be the overriding factor driving VoIP growth and demand. Jupiter Research believes VoIP service rates aren't very elastic, noting a 38 percent price reduction (from a base rate of $39.99) would yield only a 10 percent increase in demand.

Despite perception that VoIP is a low cost alternative to the phone, higher income users also express interest in the technology.

"You kind of expect that given the value proposition is all about cheap, it would be lower income users who were most interested," commented Joe Laszlo, the Jupiter Research senior analyst who headed the study. "There was a surprising amount of interest among high income users. They certainly have the income to pay for a standard telephony voice line into the home, but even people with relatively high incomes look to save money where they can. I think that creates an interesting possibility."

According to Laszlo, the conventional wisdom of younger is better in terms of technology adoption isn't true in regard to VoIP.

"The younger you get, the more you get not an interest in VoIP, [but] in wireless as the only phone," Laszlo said. "The biggest competitor to VoIP are the cellular providers, not the local phone company."

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive 9 Strategies to Engage Your Consumers White Paper

9 Strategies to Engage Your Consumers
Online marketing apps are highly engaging - taking visitors on short, but effective, conversion-focused journeys. This white paper illustrates 9 strategies to engaging consumers through app-like experiences.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Sr. Paid Search Manager
      Sr. Paid Search Manager (Bisk Education) - TampaCurrently seeking a Sr. Paid Search Manager in Tampa, FL for Bisk Education! Bisk Education is a...
    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...