Raised voice: The expansion of 4G data networks will propel subscription growth

Voice over Internet Protocol (VoIP) technology converts voice communications into digital data packets transmitted using a high-speed (broadband) connection. Explosive growth since its commercial introduction in the late 1990s began to stabilize early in the period as residential customers cut home phone services, shifting instead to wireless devices. The rapid adoption of broadband internet as well as an increase in the number of mobile internet connections strongly drove revenue growth over the five years to 2017. Nevertheless, providers continue to experience fierce competition from wireless phone carriers that are often larger, better capitalized and are long-time trusted providers. Over the next five years industry revenue is expected to continue growing...purchase to read more.

Industry Statistics & Market Size
Revenue
$23bn
Annual Growth 12-17
9.5%
Forecast Growth 17-22
Profit
Employment
52,983
Businesses
2,769
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The rapid adoption of broadband internet strongly drove revenue growth over the past five years
  • US consumers continued to adopt VoIP due to its low cost and ease of installation
  • Regulatory developments and competition from wireless carriers may put pressure on growth
  • Industry Report - Industry Key Buyers Chapter

    The VoIP Providers industry has a low level of market share of concentration, with no current major players. Over the five years to 2017, market share concentration has decreased as a host of free and low-cost Voice over Internet Protocol (VoIP) providers have increased industry-wide competition. Over this five-year period, the number of operators in the industry has increased at an annualized rate of 6.3%. Vonage, still the largest access-independent VoIP provider, has not grown nearly as fast as the rest of the industry, causing its market share concentration to fall. Concentration is expected to decrease over the next five years as the residential market reaches saturation and providers increasingly turn their attention to the highly competitive and fragmented business market...purchase to read more.

    Additional Insights for the VoIP Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the VoIP Industry are

  • Ability to negotiate successfully with the Federal Communications Commission (FCC)
  • Effective product promotion
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Number of mobile internet connections and Number of broadband connections in the VoIP industry impact industry performance..

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    What's in this report

    What is the VoIP Industry?

    Industry participants provide Voice over Internet Protocol (VoIP) services to consumers, businesses and government organizations. VoIP technology converts voice signals into digital data that is transmitted using the internet. This industry also includes VoIP providers that bundle their services with internet, cable-operated VoIP, and operators that resell VoIP services.

    Industry Products
  • Business over fixed connection
  • Residential over fixed connection
  • VoIP via other infrastructure
  • Industry Activities
  • VoIP over the public switched telephone system (PSTN)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of mobile internet connections
  • Number of broadband connections
  • Percentage of households with at least one computer
  • External competition for the VoIP industry

  • Current Performance
  • Slowing residential growth
  • Shift toward the mobile market
  • Opportunities and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • VoIP and 4G LTE
  • Potential challenges
  • Table: VoIP Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - VoIP Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Internet Service Providers
  • Software Publishing
  • Telecommunication Networking Equipment Manufacturing
  • Wired Telecommunications Carriers

  • Products & Services
  • Business over fixed connection
  • Residential over fixed connection
  • VoIP via other infrastructure
  • Chart: VoIP Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential internet telephony
  • Business internet telephony
  • Chart: Major Market Segmentation for the VoIP Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation and Marketing
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs VoIP

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the VoIP Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the VoIP Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the VoIP Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of broadband connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Access Charges
  • Access fees paid by VoIP providers to PSTN owners and ISPs to connect VoIP calls to traditional phone numbers.
  • Internet Protocol
  • A communications protocol that enables data to be transmitted across network boundaries.
  • Mobile Voip
  • VoIP service delivered wirelessly, either through a wireless internet connection (Wi-Fi) or a cell phone network.
  • Public Switched Telephone Network (Pstn)
  • The legacy circuit-switched telephone network. PSTN operators are traditional phone service providers.
  • Session Initiation Protocol
  • A signaling protocol designed for controlling voice and video communications over internet protocol.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s VoIP Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the VoIP industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on VoIP:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The VoIP market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on VoIP, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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