VoIP adoption remains elusive, but growth indicators are promising

Growth in 2005 for consumer voice-over-IP services will hinge on more aggressive deployment strategies and increasing marketing and education to end-users

December 8, 2004 Dallas, TX - Only 2% of broadband households currently subscribe to a VoIP service, according to Residential Voice -over -IP: Analysis and Forecasts (Second Edition), a forthcoming industry report from Parks Associates. This number is lower than expected considering that at the end of 2002 nearly one -third of broadband households expressed a high interest in subscribing to VoIP services.


"Historic consumer data indicate that the motivation for consumers to subscribe to VoIP is there but perhaps not the means or opportunity," said William Cheek, an analyst with Parks Associates. "To attract new customers in 2005, service providers will need to implement a strategy that includes continued aggressive rollout plans and more targeted awareness and educational campaigns."

On the positive side, Residential Voice -over -IP: Analysis and Forecasts (Second Edition), based on an Internet survey conducted by Parks Associates of more than 4,000 Internet households, finds that the VoIP market increased by more than 500,000 subscribers in the past year alone.

"We're witnessing an early shift toward VoIP as one component of consumers' digital service subscriptions," Cheek said. "Operators on both the cable and the telco sides have a significant opportunity in 2005 to add to their VoIP customer bases, provided that they adequately demonstrate and then deliver high -value, high -quality VoIP."

Residential Voice -over -IP: Analysis and Forecasts (Second Edition) examines the opportunities and obstacles to VoIP adoption and how VoIP is being used to complement television and Internet services. The report, to be released in January 2005, profiles VoIP service providers and consumers using VoIP services and forecasts VoIP adoption over the next five years. For more information about this study, please contact Parks Associates at 972 -490 -1113 or sales@parksassociates.com.

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 Fall Focus and co -hosts CONNECTIONS(TM) (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

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