A recent analysis of U.S. voice over IP (VoIP) market by TeleGeography's U.S. VoIP Research Service revealed that the growing popularity of VoIP telephone service has an adverse effect on the fixed-line customer base of the Regional Bell Operating Companies (RBOCs).

 

TeleGeography's U.S. VoIP Research Service provides an in-depth analysis of VoIP subscribers and service providers and analyzes the impact of VoIP service on incumbent telecom service providers in the country.

 

The data shows that by the first quarter of 2008, 16.3 million VoIP lines were offering services to the consumers. This comprises 13.8 percent of all U.S. households and 27 percent of broadband households in the country.

 

The growth of VoIP services has affected the customer base of the RBOCs drastically. According to TeleGeography analysis, the three major telecom operators, AT&T, Verizon, and Qwest (News - Alert) are losing the grip on the traditional fixed-line customers. It is found that since 2005, the three major companies have lost a total of 17.3 million telephone lines from U.S. households.

 

The gainers, the VoIP providers, acquired a significant share in the market. During the above period, the VoIP service providers gained 14.3 million new customers.

 

The analysis also revealed that more than 80 percent of the new VoIP subscribers get their service through cable companies. This signifies the growth of another emerging trend of offering VoIP as one component in a triple-play bundle.

 

VoIP service providers' growth has largely come at the expense of the old phone companies," noted Patrick Christian, analyst, TeleGeography.

 

The RBOCs are getting ready to take up the new challenge by launching their own triple-play solutions. Some of them have already entered the market of VoIP by providing unified solutions. Verizon (News - Alert) gained more than 1.8 million subscribers to its FiOS fiber-optic Internet service and 1.2 million FiOS TV subscribers in the first quarter of 2008.

 

AT&T (News - Alert) is in the process of upgrading its broadband network to offer a unified solution for broadband, video, and VoIP service under the brand name “U-verse.” As per the data provided by TeleGeography, AT&T had 379,000 subscribers for the U-verse broadband and video services in the first quarter of 2008, in which 4,000 subscribers also opted for VoIP services.