50% of All Internet Households are interested in VoIP telephone services

According to Parks Associates` latest report, One-half of all Internet households are interested in VoIP (voice over Internet protocol) services, which could deprive current long-distance companies of their most profitable subscribers.

Dallas, Texas January 14th, 2004 -One -half of all Internet households are interested in VoIP (voice over Internet protocol) services, which could deprive current long -distance companies of their most profitable subscribers.


Interest in these services is disproportionately among subscribers with high monthly phone bills, and cost savings is the primary driver, according to Residential Voice -over -IP: Analysis & Forecasts, a new report from Parks Associates. Furthermore, interest in VoIP service is consistent among both broadband (52%) and narrowband (48%) households. (See Figure 1, attached)

"Consumers are looking at VoIP service as a replacement for their primary phone line, not as a secondary backup," said John Barrett, a research analyst at Parks Associates. "VoIP could also serve as a lure for new broadband subscribers, given the strong interest among narrowband households. The market is still searching for a 'killer' broadband application. Wouldn't it be ironic if it turned out to be telephone service?"

The survey conducted for Residential Voice -over -IP: Analysis & Forecasts sampled 3,300 households on VoIP services.

For additional information about Parks Associates' Residential Voice -over -IP: Analysis & Forecasts or VoIP services, please contact sales@parksassociates.com or call 972 -490 -1113.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts two executive seminars, both part of the Fall Focus series, and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com.

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