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The Future of Consumer VoIP: Leveraging Internet Advances for Profitable Consumer Voice Services Product Image

The Future of Consumer VoIP: Leveraging Internet Advances for Profitable Consumer Voice Services

  • ID: 1287934
  • June 2010
  • 156 Pages
  • Scripp Business Insights

FEATURED COMPANIES

  • AT&T
  • Deltathree
  • France Telecom
  • NTT
  • Skype
  • TDC
  • MORE

"It is important to distinguish between a profitable business that successfully sells VoIP services and a profitable VoIP business. Successful VoIP businesses are driven by other services the company offers, and by services that align with customers' perceived needs – not by the VoIP business alone."

In the early 2000s, telecom industry experts widely expected VoIP to change the dynamics of the voice communications business. But a decade later, the largest providers of consumer Internet voice services are, with one exception, conventional telecommunications companies. Some are pioneers and innovators, some are not. What they do share, however, is a market strategy that doesn't rely solely on price.

This report provides an overview of the current state of the consumer VoIP market, examines VoIP business successes and failures, and explores how evolving IP communications – mobility, convergence, femtocells, cloud computing, ultra-fast broadband, and open devices – are opening new opportunities for successful consumer VoIP services.

Key Insights:

- The most profitable over-the-top VoIP providers are those that quickly leveraged their success READ MORE >

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • AT&T
  • Deltathree
  • France Telecom
  • NTT
  • Skype
  • TDC
  • MORE

The Future of Consumer VoIP
Executive summary
VoIP – The disruption that didn't disrupt
Consumer VoIP provider strategies
The VoIP market in China
The VoIP market in Europe
The VoIP market in Japan
The VoIP market in the US
New VoIP opportunities in Internet advances
Choosing a path to consumer VoIP business success

Chapter 1 Introduction – VoIP: The disruption that didn’t disrupt
Summary
Introduction
Market disruption: more than technology change
Successful consumer VoIP businesses show opportunities
The future of consumer VoIP

Chapter 2 Consumer VoIP provider strategies
Summary
Free phone calls do not generate profits
Over-the-top consumer VoIP companies struggle for profitability
Vonage
Deltathree
Mobile VoIP delivers similarly disappointing results
Vyke
Truphone
New players
Ooma
The future of pureplay consumer VoIP
8x8
Traditional telecoms companies
AT&T
Comcast Cable
SoftBank BB
France Telecom
Skype

Chapter 3 The VoIP market in China
Summary
Introduction
Technology outlook
Broadband penetration & growth
Fixed voice line decline
Consumer VoIP penetration & forecast growth
Consumer voice providers, VoIP providers
Market drivers, challenges, barriers, and cultural and social considerations
VoIP opportunities
Regulatory climate

Chapter 4 The VoIP market in Europe
Summary
Introduction
Technology outlook
Broadband penetration & growth
Fixed voice line decline
Consumer VoIP penetration & forecast growth
European telecommunications industry landscape
VoIP providers
BT Group
Deutsche Telekom
Skype in Europe
France Telecom: lead change instead of following it
Iliad SA
OTE
TDC
European VoIP opportunities
Regulatory climate
VoIP regulation

Chapter 5 The VoIP market in Japan
Summary
Introduction
Technology outlook
Broadband penetration and growth
Consumer VoIP penetration & forecast growth
Consumer voice providers, VoIP providers
NTT
SoftBank
NTT affiliates
KDDI
Cultural and social considerations
Opportunities
Challenges
Regulatory climate
VoIP regulation

Chapter 6 The VoIP market in the US
Summary
Introduction
Technology outlook
Broadband penetration & growth
Consumer VoIP penetration & forecast growth
Telecommunications industry landscape
Consumer voice providers, VoIP providers
Market drivers, challenges, barriers, and cultural and social considerations
Unique market opportunities
Regulatory climate
A history of strategic deregulation
The debate over Internet regulation
VoIP regulation

Chapter 7 New VoIP opportunities in Internet advances
Summary
Introduction
The network: the essential enabling infrastructure
Bundling is a natural evolution for network operators
Video services drive successful bundling strategies, and three is the best number
The challenge with bundling: profitability
Network openness is another avenue to success
Google validates the importance of the underlying network
Google's history as Internet and VoIP provider
With the exception of Skype, Internet companies have not been successful with voice
Just saying you're a consumer services provider doesn't make you one
The size of Google's opportunity depends on who the competition is
Femtocells: enabling infrastructure for extending mobile phone into the home
Femtocells enable more mobile phone calls – not just indoor mobile phone calls
Simplicity is key for femtocells
Incentives for adoption
Capabilities: 21st century VoIP is mobile
The obvious short-term opportunity: cheap mobile VoIP calling
The long-term opportunities: fixed-mobile convergence, new mobile services with integrated voice
Capabilities: Convergence fights eroding profitability with added value and convenience
Opportunities through convergence
Challenges: market education, business alignment, and ease-of-use
Capabilities: Cloud telephony enables advanced functionality at basic prices
The personal PBX
Cloud telephony challenges: price, differentiation, and establishing the value proposition
Capabilities: Intelligent voice changes the focus from ‘how much it costs’ to ‘how much it does’
Delivery: Apps that go beyond simple voice integration
Delivery: Open handset platforms offer the opportunity for competitively priced special-purpose appliances
Opportunities in medical applications
Hiding in plain sight: reinventing the home phone
Specialized device and app challenges: price, channel conflict, usability and security
The future: KDDI’s Polaris life device

Chapter 8 Choosing a path to consumer VoIP business success
Summary
Paths to success
Three building blocks for business models
Company examples
Consumer VoIP service example

Chapter 9 Appendix

Bibliography

Index

List of Figures
Figure 2.1: Vonage financial performance ($m), 2004-2009
Figure 2.2: Vonage Q1 2010 ARPU, marketing costs and new subscribers
Figure 2.3: Over-the-top VoIP companies revenue and losses (latest available, $m)
Figure 2.4: 8x8 financial performance ($m), 2005-2009
Figure 2.5: AT&T U-verse TV and voice subscriber growth, 2008-2009
Figure 2.6: AT&T U-verse subscriber bundle uptake, 2009
Figure 2.7: Comcast and Vonage VoIP customers (000s), 2005-2009
Figure 2.8: Comcast digital voice subscriber growth, 2006-2009
Figure 2.9: France Telecom service take-up (%), 2008-2009
Figure 2.10: Skype revenue and user account growth, 2005-2009
Figure 3.11: Consumer mobile and fixed lines in China (m), 2009-2014
Figure 3.12: Consumer VoIP users and revenues in China, 2009-2014
Figure 3.13: Chinese telecom services pricing and regulation
Figure 4.14: Broadband subscribers in Europe (m), 2009-2014
Figure 4.15: Consumer mobile and fixed lines in Europe (m), 2009-2014
Figure 4.16: Consumer VoIP subscribers and revenues in Europe, 2009-2014
Figure 4.17: Iliad subscribers and ARPU, 2006-2009
Figure 4.18: Iliad revenue, profits and margin change, 2006-2009
Figure 4.19: TDC customer segmentation by service (%)
Figure 5.20: VoIP and mobile broadband subscriptions in Japan (m), 2009-2014
Figure 5.21: Japan VoIP service market share for key operators (%)
Figure 5.22: SoftBank consolidated business profitability, 2006-2009
Figure 6.23: US consumer Internet subscribers (m), 2009-2014
Figure 6.24: Consumer VoIP subscribers and revenues in the US, 2009-2014
Figure 6.25: US handset-based VoIP market share for key operators (%)
Figure 7.26: TV companies lead in triple play ARPU
Figure 7.27: Global femtocell access points and users (m), 2009-2014
Figure 7.28: The business case for femtocells
Figure 7.29: SoftBank revenue, 1995-2009 – the impact of free DSL modems and VoIP service
Figure 7.30: Global VoIP and mobile broadband subscriptions (m), 2009-2014
Figure 7.31: Changing communications preferences for 15-25 year olds, 1990-2010
Figure 8.32: Building blocks for Consumer VoIP business models - summary
Figure 8.33: Building blocks for Consumer VoIP business models – company examples
Figure 8.34: Building blocks for Consumer VoIP services

List of Tables
Table 2.1: Vonage financial performance ($m), 2005-2009
Table 2.2: Vonage Q1 2010 ARPU, marketing costs and new subscribers
Table 2.3: Over-the-top VoIP companies revenue and losses (latest available, $m)
Table 2.4: 8x8 financial performance ($m), 2005-2009
Table 2.5: AT&T U-verse TV and voice subscriber growth, 2008-2009
Table 2.6: AT&T U-verse subscriber bundle uptake, 2009
Table 2.7: Comcast and Vonage VoIP customers (000s), 2005-2009
Table 2.8: Comcast digital voice subscriber growth, 2006-2009
Table 2.9: France Telecom service take-up (%), 2008-2009
Table 2.10: Skype revenue and user account growth, 2005-2009
Table 3.11: Consumer mobile and fixed lines in China (m), 2009-2014
Table 3.12: Consumer VoIP users and revenues in China, 2009-2014
Table 4.13: Consumer fixed VoIP subscribers (m) in selected European countries, 2009-2014
Table 4.14: Iliad subscribers and ARPU, 2006-2009
Table 4.15: Iliad revenue, profits and margin change, 2006-2009
Table 5.16: SoftBank consolidated business profitability, 2006-2009
Table 7.17: Percentage of consumers that are interested in services targeted to their special interests

Note: Product cover images may vary from those shown

- Vonage
- Deltathree
- Vyke
- Truphone
- Ooma
- AT&T
- Comcast Cable
- Softbank BB
- France Telecom
- Skype
- BT Group
- Deutsche Telekom
- France Telecom
- Illiad SA
- OTE
- TDC
- NTT
- SoftBank
- KDDI

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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