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VoIP Adoption, Spending Poised for Significant Growth

March 01, 2005

Market Watch

Forthcoming USA Today Special Report and VoIP Institute by Larstan to Address Issues for Consumers and Corporate America

BUSINESS WIRE -- An emerging technology has moved to the top of a rapidly increasing number of corporate buying lists. A new survey reports that 29 percent of respondent companies will increase spending on Voice over Internet Protocol (VoIP) within the next six months. Among those who will switch carriers in the next six months, the largest segment, 17%, said they intend to switch to Internet phone service provider Vonage.

The survey, conducted by ChangeWave Research, underscores how VoIP may be poised to "cross the chasm" from the early adoption phase to mainstream acceptance. VoIP allows companies and consumers to make telephone calls using a broadband Internet connection instead of a conventional, analog phone line. The most salient benefit of VoIP is substantial savings on long distance charges. However, VoIP also heralds the convergence of voice and data systems, which opens the door to a cornucopia of productivity-enhancing services.

"We've seen a big uptick in interest in VoIP, from both our businesses and consumers," said Gary Morgenstern, spokesperson, AT&T. "The media has created a technology storm around VoIP, which has sparked a lot of mainstream interest. Companies are switching to VoIP because they can achieve savings, but also because they can converge their voice and data networks into a single network. Convergence provides advanced capabilities and greater productivity for employees. It allows more companies to go 'virtual' and save on overhead."

Bridging the VoIP 'Information Gap'

Chuck Butler, CEO of Free Flow Technologies (www.freeflow.net), a VoIP service provider said "The only thing standing in the way of VoIP becoming the dominant method of voice transmission service is education. After many years VoIP is finally stable and ready for prime time, but the very public gaffes, from when the technology was still in its infancy, still stops most potential users from making the switch."

This "information gap" will be addressed in April for millions of business and consumer readers in USA Today, in a Special Report called, "Phones of the Future Today: The Internet Revolution of Phone Service." The report, produced by Larstan Business Reports, Inc. (www.larstan.com), is slated for publication next month, in conjunction with Larstan's launch of the online "VoIP Institute" and a VoIP educational webcast series.

"The industry's leading technology players are continuing to step forward to underwrite this educational initiative," said Jennifer O'Grady, telecom managing director, Larstan Business Reports. "They understand that VoIP has the potential to transform the telecommunications landscape, but that reality can only be reached when a critical mass of businesses and consumers understand and feel at ease with both the technology and the specific companies that provide it. Our educational series will highlight this to millions of potential customers."

For information on VoIP Special Reports, the VoIP Institute, or the educational webcast series, contact Jennifer O'Grady at 301-637-4591 x902, or at jogrady@larstan.net.

SOURCE: Larstan Business Reports, Inc.