VoIP Explodes in 2005

Voice over Internet Protocol better know as VoIP has grown tremendously
in the past few years. This growth trend is not expected to slow down any
time soon. It is reported that the VoIP industry will continue to set
records in the upcoming years. In the next 3 years there is likely to be
4 million new VoIP subscribers in the United States. Those 4 million
pioneers will still represent a small fraction of the 113 million
households where the traditional phone call will still hold strong. This
just means that the VoIP market has plenty of room to grow in the next
century.

IDC estimates some 3 million Americans are currently signed up for VoIP in 2005. They expect that the number of VoIP consumers will grow nine-fold to 27 million by the end of 2009. Analyst firm IDC said that VoIP has been slow to get rolling but is "finally beginning to show its potential in the consumer market." Going forward, the value proposition of VoIP will become less about price, the major selling point today, and more about service capabilities. Unlimited local and long-distance calling and voice mail along with many more standard features for as little as $20 a month is a bargain compared to traditional phone service prices. The low price of VoIP is the main attraction for new customers willing to try out this new technology.

These numbers are impressive by every means but many VoIP customers are still holding out to see how the new technology holds up in the next few months. Am IDC analyst refers to the technology as "still in the very early stages of development and carriers and equipment vendors need to plan for a marathon." The technology is still evolving, for instance, many early adopters complain about crackling calls or other interference. New providers have accounted for these problems and have adjusted their new VoIP lines to eliminate these various problems to ensure the best service the technology allows.