Dallas, TX -- (SBWIRE) -- 08/05/2010 -- ReportsandReports announce it will carry The Future of Consumer VoIP: Leveraging Internet advances for profitable consumer voice services Market Research Report in its Store.

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"It is important to distinguish between a profitable business that successfully sells VoIP services and a profitable VoIP business. Successful VoIP businesses are driven by other services the company offers, and by services that align with customers' perceived needs – not by the VoIP business alone."

In the early 2000s, telecom industry experts widely expected VoIP to change the dynamics of the voice communications business. But a decade later, the largest providers of consumer Internet voice services are, with one exception, conventional telecommunications companies. Some are pioneers and innovators, some are not. What they do share, however, is a market strategy that doesn't rely solely on price.

This report provides an overview of the current state of the consumer VoIP market, examines VoIP business successes and failures, and explores how evolving IP communications – mobility, convergence, femtocells, cloud computing, ultra-fast broadband, and open devices – are opening new opportunities for successful consumer VoIP services.

Key Insights

• The most profitable over-the-top VoIP providers are those that quickly leveraged their success into building their own networks.

• Successful VoIP providers offer multiple communications services, as well as services aligned with the key needs of targeted markets.

• Consumer VoIP is most successful in the most regulated (non-Communist) markets.

• The core network is still a key opportunity for service providers to differentiate.

• Telecoms have more natural advantages in the VoIP business than incumbency. They understand consumer expectations, and the migration to all-IP networks allows them to leverage network consolidation.

• The pressure is on VoIP service providers to make VoIP mobile. Driven by growing mobile handset capabilities and broadband subscriptions, and continued high prices for international calls, the market for mobile VoIP is developing quickly.

• The mobile handset is coming into its own as a platform for converged communications.

• The rapidly growing number of mobile smartphones creates opportunities to integrate voice interaction into a wide range of applications, as well as creating opportunities for other types of intelligent, converged appliances – reinventing the home phone, for example. Amazon's Kindle e-book shows the opportunity for mobile communications-equipped "appliances" at mass-market prices.

• Consumers increasingly want services customized to their needs, preferences and priorities – giving VARs, software companies, and Internet companies, as well as voice service providers, opportunities increase their value to specific markets and customers.

• Emerging markets present big risks, but offer big VoIP opportunities because many people in these countries are bypassing conventional telephone service for mobile and VoIP.

Use this report to:

• Identify profitable business opportunities, strategies and markets for consumer VoIP.
• Understand what works and what doesn't in the VoIP business.
• Analyze successful VoIP business models.
• Examine the challenges facing VoIP service providers.

Discover

• Who are the winners and losers in consumer VoIP?
• How many VoIP subscribers and broadband (wired and mobile) users are there in China, Europe, Japan and the US?
• Who are the key VoIP players in these regions?
• What are the opportunities in specific regions?
• How can providers leverage Internet evolution into specific services that consumers value?
• What are the challenges facing VoIP providers, and what are the strategies they need to meet them?

Table of Contents
The Future of Consumer VoIP
Executive summary 12
VoIP – The disruption that didn't disrupt 12
Consumer VoIP provider strategies 12
The VoIP market in China 13
The VoIP market in Europe 14
The VoIP market in Japan 15
The VoIP market in the US 16
New VoIP opportunities in Internet advances 17
Choosing a path to consumer VoIP business success 18

Chapter 1 Introduction – VoIP: The disruption that didn’t disrupt 20
Summary 20
Introduction 20
Market disruption: more than technology change 21
Successful consumer VoIP businesses show opportunities 21
The future of consumer VoIP 22

Chapter 2 Consumer VoIP provider strategies 24
Summary 24
Free phone calls do not generate profits 25
Over-the-top consumer VoIP companies struggle for profitability 26
Vonage 26
Deltathree 29
Mobile VoIP delivers similarly disappointing results 30
Vyke 30
Truphone 30
New players 31
Ooma 32
The future of pureplay consumer VoIP 34
8x8 35
Traditional telecoms companies 38
AT&T 38
Comcast Cable 41
SoftBank BB 44
France Telecom 45
Skype 46

Chapter 3 The VoIP market in China 50
Summary 50
Introduction 51
Technology outlook 51
Broadband penetration & growth 51
Fixed voice line decline 51
Consumer VoIP penetration & forecast growth 52
Consumer voice providers, VoIP providers 54
Market drivers, challenges, barriers, and cultural and social considerations 55
VoIP opportunities 55
Regulatory climate 56

Chapter 4 The VoIP market in Europe 60
Summary 60
Introduction 61
Technology outlook 62
Broadband penetration & growth 62
Fixed voice line decline 63
Consumer VoIP penetration & forecast growth 64
European telecommunications industry landscape 65
VoIP providers 67
BT Group 67
Deutsche Telekom 68
Skype in Europe 70
France Telecom: lead change instead of following it 71
Iliad SA 72
OTE 76
TDC 76
European VoIP opportunities 78
Regulatory climate 79
VoIP regulation 79

Chapter 5 The VoIP market in Japan 82
Summary 82
Introduction 83
Technology outlook 83
Broadband penetration and growth 83
Consumer VoIP penetration & forecast growth 84
Consumer voice providers, VoIP providers 85
NTT 85
SoftBank 86
NTT affiliates 88
KDDI 88
Cultural and social considerations 90
Opportunities 91
Challenges 92
Regulatory climate 93
VoIP regulation 93

Chapter 6 The VoIP market in the US 96
Summary 96
Introduction 97
Technology outlook 97
Broadband penetration & growth 97
Consumer VoIP penetration & forecast growth 98
Telecommunications industry landscape 99
Consumer voice providers, VoIP providers 100
Market drivers, challenges, barriers, and cultural and social considerations 102
Unique market opportunities 103
Regulatory climate 104
A history of strategic deregulation 104
The debate over Internet regulation 105
VoIP regulation 106

Chapter 7 New VoIP opportunities in Internet advances 108
Summary 108
Introduction 109
The network: the essential enabling infrastructure 110
Bundling is a natural evolution for network operators 111
Video services drive successful bundling strategies, and three is the best number 111
The challenge with bundling: profitability 113
Network openness is another avenue to success 113
Google validates the importance of the underlying network 114
Google's history as Internet and VoIP provider 114
With the exception of Skype, Internet companies have not been successful with voice 115
Just saying you're a consumer services provider doesn't make you one 116
The size of Google's opportunity depends on who the competition is 117
Femtocells: enabling infrastructure for extending mobile phone into the home 118
Femtocells enable more mobile phone calls – not just indoor mobile phone calls 119
Simplicity is key for femtocells 121
Incentives for adoption 122
Capabilities: 21st century VoIP is mobile 124
The obvious short-term opportunity: cheap mobile VoIP calling 125
The long-term opportunities: fixed-mobile convergence, new mobile services with integrated voice 126
C 127
apabilities: Convergence fights eroding profitability with added value and convenience 127
Opportunities through convergence 127
Challenges: market education, business alignment, and ease-of-use 129
Capabilities: Cloud telephony enables advanced functionality at basic prices 131
The personal PBX 131
Cloud telephony challenges: price, differentiation, and establishing the value proposition 132
Capabilities: Intelligent voice changes the focus from ‘how much it costs’ to ‘how much it does’ 134
Delivery: Apps that go beyond simple voice integration 134
Delivery: Open handset platforms offer the opportunity for competitivelypriced special-purpose appliances 136
Opportunities in medical applications 136
Hiding in plain sight: reinventing the home phone 137
Specialized device and app challenges: price, channel conflict, usability and security 138
The future: KDDI’s Polaris life device 139

Chapter 8 Choosing a path to consumer VoIP business success 142
Summary 142
Paths to success 142
Three building blocks for business models 144
Company examples 144
Consumer VoIP service examples 146

Chapter 9 Appendix 149
Bibliography 149
Index 155

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