VoIP Is a Broadband Demand Driver

VoIP Is Increasing Broadband Penetration

VoIP may be the long awaited “killer application” for driving broadband subscribership. Across the country, consumers are flocking to broadband in order to take advantage of the many benefits of VoIP. The Yankee Group predicts that VoIP could spur new growth in untapped markets and enable entirely new business models.

VoIP can play a critical role in boosting broadband demand

At present, only about 65 percent of Americans have subscribed to broadband. Among those who do not have broadband, approximately 70 percent report that broadband is too expensive. VoIP, however, can overcome price barriers by dispersing the cost across both products — voice and broadband. While broadband penetration rates currently drive VoIP adoption, VoIP could become the application to drive future broadband adoption.

In the next five years, the proliferation of VoIP services will create huge opportunities for consumers and even greater growth for broadband providers.

Recognizing the potential of broadband, the Federal Communications Commission has laid out an ambitious agenda of achieving ubiquitously available affordable broadband by 2013. Ubiquitously available broadband would not only unleash an estimated $500 billion in economic growth and the more than 1.2 million high-wage jobs, but it could help bridge the digital divide and unleash a new wave of innovations, and transform almost every aspect of our lives.

Americans Are Getting Left Behind Without The Tools To Succeed in the 21st Century:

  • America is falling further behind among industrialized nations in broadband. The United States has now fallen to 16th among industrialized nations in deploying broadband services.
  • Two-Thirds of Americans Lack Access. Only 30% of U.S. households subscribe to broadband services reflecting too few choices, too high of prices, and too limited service.

Among those who do not have broadband, approximately 70 percent report that broadband is too expensive. VoIP can lower the effective cost of broadband.