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BetaDot » Verizon Switch
Verizon's Move To VoIP A Good Gamble

A recent report from TeleGeography says that Verizon’s migration to VoIP may be just what the company needs.



TeleGeography’s latest research indicates that 5.4 million U.S. households now subscribe to a VoIP service–up from just 2.7 million one year ago. On top of that, 2.8 million of those households have switched to cable MSOs’ VoIP services and have completely cancelled their local phone lines altogether.
By the end of 2005, Verizon had lost more than 8% of its residential phone subscribers. According to the results from an April 2006 survey conducted by TeleGeography, the number of customers jumping to VoIP will only accelerate until 2010, when VoIP will have attracted over an estimated 21 million subscribers–nearly one in five of all U.S. households.
Although the move to VoIP risks cannablizing Verizon’s revenue, sticking with traditional service would translate to $13.9 billion in lost long-distance revenues over the course of the next five years, and $17.4 billion in lost local phone service revenues.

Summary

A recent report from TeleGeography says that Verizon’s migration to VoIP may be just what the company needs.


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