JupiterResearch projects that the VoIP telephony market will top 25 million US households by 2012, driven by greater broadband subscribership and the expansion by cable operators into new markets. In a report titled, “US Broadband Telephony Forecast, 2007 to 2012: Cable MSOs assert their dominance in the VoIP market,” JupiterResearch found the ability to successfully bundle broadband telephony with other relevant services will continue to drive consumers’ adoption of cable-based VoIP, which currently accounts for 71 percent of the VoIP telephony market.

According to the study, growth in cable-based VoIP will drive the market going forward. After more than 10 years in the telephony business, cable operators have finally struck a chord with consumers, as demonstrated by the acquisition of about 3.6 million new VoIP telephony customers in 2006.

The sufferings of Vonage, underscored by its patent-infringement case with Verizon, indicate the over-the-top VoIP market is increasingly at risk of becoming irrelevant. Growth of broadband connectivity, greater availability of VoIP services, aggressive promotion of bundled packages, and more diverse offerings at a lower cost could each play a significant role in the eventual demise of the single-play VoIP market.

Over-the-top VoIP providers currently add subscribers on a net basis, but reliability and service quality offered by cable providers threatens future growth opportunities for single-play providers,” said David Schatsky, President of JupiterResearch. “Additionally, the relative difference in price points for voice service is declining as cable providers drop prices and over-the-top providers have added regulatory and cost-recovery fees.”

The complete findings of this report and recommendations are immediately available to JupiterResearch clients online at www.jupiterresearch.com.