Report Summary

VoIP: Clicks, Calls and the New Telephony Infrastructure
Michael Boland with Greg Sterling, Advisory, 10/4/05

The implications of mainstream adoption of VoIP as an alternative to traditional phone service are significant for consumers, advertisers, telcos and the Internet mega-brands that are quickly transforming into diversified media and communications providers. Expansion of call tracking, increased proliferation of pay-per-phone-call (PPCall) and the degradation of the listings database are some of the potential long-term effects of VoIP penetration. Estimates for adoption in the U.S. and Europe range from roughly 12 million to more than 20 million users by 2009.

In realistically assessing VoIPs outlook, one needs to consider what would motivate mainstream consumers to adopt it at the expense of traditional phone service (i.e., price, features). Another factor to consider is that VoIP requires a broadband connection and thus depends on further proliferation of high-speed access. Regardless, VoIP is no longer the stuff of IT trade publications; it is an emerging alternative telephony infrastructure. The question is, how far and how quickly will it penetrate?

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About the Analysts

Charles Laughlin
Bobbi Loy-Luster
Carlotta Mast
Neal Polachek

Greg Sterling

600 Executive Drive
Princeton, NJ

Tel: (609) 921-7200
Fax: (609) 921-2112
[email protected]

Copyright 2005
The Kelsey Group, Inc.