VoIP Service Revenue Doubles; Will Hit $120 Billion in 2009

VoIP service revenue doubled in North America, Europe, and Asia Pacific from 2004 to 2005, and will continue to boom for at least the next five years, according to a new report by Infonetics Research.

The report also found that a combined $120 billion will be spent in the three regions on VoIP services between 2005 and 2009.

The report projects China will emerge as a major VoIP business market over the next several years "because the Chinese government is encouraging carriers to accelerate the migration to IP Centrex and IP PBX from their existing TDM Centrex," according to Stephane Teral, principal analyst at Infonetics Research

In addition, the report found:

* Vonage remains the leader in North American residential/SOHO VoIP subscriber market share, but its market share declined from 34% in 2004 to 27% in 2005, due to increased competition from cable MSOs, traditional telcos, and low-cost new entrants.* The number of worldwide VoIP subscribers will almost double from 2005 to 2006, when it will top 47 million.

Cable companies are increasing their VoIP subscriber share. Cablevision and Time Warner Cable each have double-digit share and have a combined 39% of all North American residential VoIP subscribers.