SCOTTSDALE, AZ – Cheaper voice-over-Internet Protocol (VoIP) technology is the key market enabler for cable telephony services and subscriber growth, according to market research firm In-Stat.
The availability of VoIP, which is less expense to provision than traditional circuit-switched telephony, in North America was directly responsible for an almost two-fold increase in the number of North American subscribers in 2006, according to the In-Stat research paper, The Worldwide Market for Cable Telephony Services.
In-Stat reported the number of cable telephony subscribers worldwide rose to over 22 million in 2006 from 15.8 million in 2005. The report also noted cable telephony revenues are growing rapidly and should reach $10.5 billion in 2007, up from $7.9 billion in 2006. It is predicted that North America will account for two-thirds of cable telephony revenues this year.
“In a growing number of markets around the world, cable TV operators consider telephony service to be an integral part of their telecommunications service bundle,” said In-Stat analyst Mike Paxton. “This has led to increasing service availability in North America, Europe, and in a few countries in Asia.”
Citing a recent U.S. consumer survey, In-Stat stated 42% of all U.S. cable telephony subscribers signed up for the service during the past 12 months.
