Half of VoIP Users Drop Landlines Telephia recently reported that Internet-based telephone service (or Internet telephony) is replacing traditional landline phone service among those
who have chosen VoIP, a technology that allows consumers to place telephone calls over the Internet. Fifty-three percent of high-tech households subscribing to Internet telephony have completely
replaced and disconnected their landline phones. High-tech households are identified as those who currently subscribe to at least three bundled or emerging services (e.g., wireless data,
video-on-demand, Internet-based telephony, satellite radio, broadband, DVR, etc.), or expressed an intent to purchase four or more services.
According to the Telephia Emerging Personal
Communications Options (EPCO) survey of high-tech households, when asked what the primary reasons were for subscribing or having interest in Internet-based telephone service:
- 59 percent said savings on calls within the United States was the top factor in making the switch.
- Among those who showed interest in adopting Internet telephony, but
have not subscribed to a service, 30 percent said that bundled package deals were a key reason for their interest.
- For these 'intenders,' seventeen percent said interconnectivity
across different communication services was important
- Fifteen percent said the ability to switch between telephone networks
- Eleven percent mentioned caller
ID on TV as a reason for interest
Forty-three percent of high-tech households who continue to use traditional landline phone services, but are interested in adopting
Internet-based telephone service, said that availability during a power outage was a reason for not replacing their landline phone service:
Why Consumers Do Not Replace Landline Phone Service with Internet-based Phone Service (% of respondents) |
| Percent Share |
Availability during power outage | 43%
|
Wanted to keep my current phone number | 34%
|
Ability for 911 to locate me in an emergency |
31% |
Limited amount of savings over current provider | 28% |
Uncertainty about how to establish a line | 23% |
Equipment Expense | 22% |
Call Quality |
21% |
Computer Instability | 19%
|
Security/Privacy | 16% |
Company instability | 11% |
High Speed Internet connection is unavailable in my area | 6% |
Other | 10% |
Source: Telephia EPCO Survey, Q2 2005 |
In addition, Jim Penhume of StrategyAnalytics reports that
EBay's acquisition of VoIP provider Skype reflects the increasing importance that portals and other consumer-focused web companies are placing on communications functions such as messaging and VOIP.
The merger will raise consumer awareness and acceptance of all types of VOIP services.
And, Nielsen//NetRatings reports that Skype saw 6.9 million active users, or a 2.4 percent active
reach, during July 2005, across the 10 countries of Australia, Brazil, France, Germany, Italy, Spain, Sweden, Switzerland, U.K. and U.S. In the U.S., Skype reached an all-time high of 1.3 million
unique users, or an active reach of less than one percent, during July 2005. Year-over-year growth from August 2004 to August 2005 shows a 178 percent rise in unique users.
For more about this study, go here.