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Study: VoIP Continues to Grow

A new report issued by Telephia backed up the idea that voice over Internet protocol is connecting with consumers.

The report found that households subscribing to pure-play subscription VoIP services increased from 2.2 million in the first quarter of this year to 2.9 million in the second quarter.

Of the pure-play providers -- and Telephia does not include cable operators in this count because many offer a mix of switched and VoIP service -- Vonage America continues to lead in market share, claiming 53.9%. Verizon Communications’ VoiceWing and AT&T’s CallVantage were tied for second place with 5.5% share apiece, and SunRocket followed in third with a 4% share.

“With a large share of U.S. households now connecting via broadband networks, VoIP has become a popular and cost-effective alternative for replacement, as well as a complement to the traditional home landline,” said Kanishka Agarwal, Telephia’s vice president of new products.

That said, it appears that there is still room for service improvement among the VoIP players. The survey found that more than 27% of VoIP subscribers who are likely to switch providers said it is because of network-quality issues. More than 12% of all VoIP subscribers said they probably will switch providers within a year.