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Huge Growth Seen In Retail VoIP: Page 2 of 4

Point Topic says the figures — based on its broadband market research on behalf of the DSL Forum, publicly available statistics and estimates where figures were not available — suggest US telcos are beginning to enter the VoIP market, with Verizon's VoiceWing service up and running, SBC rolling out services, and Qwest planning a
launch soon.

These developments are partly driven by new network build, such as SBC's investment in fibre. However, Bosnell suggests they are also a response to Vonage poaching voice customers from DSL subscribers.

Vonage is said to have grown its subscriber base by almost 38 percent in the first 3 months of 2005.

"France is the most significant market in Europe at the moment, with over 1.2 million subscribers to retail VoIP services by the end of Q1 2005," adds Bosnell.

The Point Topic research also looked at the phenomenon that is Skype, but concluded it is difficult to ascertain just how many people use the service.