Thursday, May 05, 2005

Om Malik: The Real Truth about VoIP Sales

Om Malik provides some real figures on the hype around VoIP sales:

VoIP service revenues will grow from $1.3 billion in 2004 to $19.9 billion in 2009, Infonetics Research’s latest report, VoIP Services annual market size and forecast for North America. That’s less than 1% of the total Voice revenues in the US. So much for getting excited about VoIP in 2004. Now a few weeks ago, we had a report that said there are 1100 VoIP service providers world wide, of which about 500 are in the US. That means each one of those is doing about $2 million in sales. That’s normalized for the entire group. Back out the top three - Vonage, Cablevision and Time Warner, and factor in that of the total half of it came from Managed IP PBX services, well the residential market was much smaller than many though it was. In other words, all the other pretenders in the VoIP races, well they’re doing bupkiss in sales.


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