Use of Internet-based phone service up 21%

August 11th, 2006 - Posted in VoIP

U.S. subscribers to Internet-based telephone services grew 21 percent, to 6.9 million, in the second quarter, with cable TV companies expanding their lead in market share compared with Vonage and other pure-play providers, research firm TeleGeography reported Wednesday.

The latest tally on voice over Internet protocol, better known as VoIP, marks a 153 percent gain compared with mid-2005. But the second-quarter increase was slightly slower than in the first quarter, when it grew by 28 percent, TeleGeography said.

VoIP revenue for the second quarter was up 175 percent, at $607 million, across the United States, compared with a year-ago level of $221 million.

Cable TV companies account for 60 percent of VoIP subscribers, or about 4.1 million, up from 52 percent in mid-2005. Vonage and other pure-play VoIP providers serve the remaining about 2.8 million subscribers.

Copyright © 2006, Chicago Tribune

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