Infonetics Research released excerpts from its new Mobile VoIP Services and Subscribers report, which tracks native mobile voice over IP (a.k.a. voice over Long Term Evolution, or VoLTE) and over-the-top mVoIP service revenue, subscribers, and deployments by world region.

ANALYST NOTE

"The adoption of over-the-top mobile VoIP services is growing rapidly but it is not without challenges. With free applications and extremely low revenue from users, it is tricky for application providers without the deep pockets of larger companies like Google, Microsoft, and Telefónica to have a sustainable long-term business model. Despite the fact that we expect mobile VoIP subscribers to grow nearly 10-fold from 2010 to 2015, there is relatively little money to be made from it in the near term," poses Diane Myers, directing analyst for VoIP and IMS at Infonetics Research.

Co-author of the report Stéphane Téral, Infonetics Research's principal analyst for mobile infrastructure, adds: "As LTE becomes the universal mobile infrastructure, TDM voice -- which is a $500 billion-a-year business -- will migrate to VoLTE (native mobile VoIP). In the near term, though, two key challenges need to be addressed: the world needs widely available LTE handsets that support VoLTE -- and we're nowhere near that stage -- and Single Radio Voice Call Continuity needs to be finalized so that voice calls work seamlessly between LTE and legacy networks. Make no mistake: VoLTE is the future; it will just take many years to get there."

MOBILE VOIP MARKET HIGHLIGHTS

• OTT providers, led by frontrunner Skype, dominate the worldwide mobile VoIP services market
• Infonetics Research forecasts the number of mobile VoIP subscribers to grow from 47 million in 2010 to almost 410 million by 2015, driven by increased smartphone and mobile broadband adoption
• Native mobile VoIP will launch with Verizon's VoLTE service in 2012, but will remain an extremely small portion of the total mobile VoIP market until there is full LTE coverage around the world, not likely until around 2020
• In 2010, operators made on average only $13.21 per user per year from mobile VoIP services, demonstrating how little revenue there is to be made from OTT mVoIP services

Research and Markets has announced the addition of the "USA - VoIP Market - Analysis, Statistics and Forecasts" report to their offering. Strong subscriber and revenue growth rates have positioned VoIP firmly on the US telecommunications map. Since the entry of Comcast and other cable companies, VoIP services have been emerging apace. In 2010 the US cable companies were providing telephone services to more than 20 million subscribers. Non-facilities based, or pure play, VoIP providers, such as Skype, are making strong inroads into the US VoIP market.

The VoIP market has also witnessed the entry of Microsoft and Apple and Internet giants Google and Yahoo! Mobile VoIP is poised for exponential growth, underpinned by the widespread adoption of WiFi-enabled handsets. The deployment of 3G networks, of the Clear WiMAX network on which Sprint Nextel and others provide mobile services, and the decisions by Verizon Wireless and AT&T Mobility to upgrade to an open access LTE platform for their 4G investments will propel mobile VoIP into the mainstream of mobile telecommunications.

Key Topics Covered:

1. Synopsis

2. VoIP market 2.1 Overview 2.2 VoIP statistics 2.3 VoIP regulation

3. VoIP technology in the US 3.1 Overview 3.2 History 3.3 IP telephony gateways 3.4 Value-added features 3.5 Hosted VoIP solutions 3.6 Circuit-to-packet network migration 3.7 IP-based private networks and computer telephony integration 3.8 Mobile VoIP

4. Major VoIP providers 4.1 Cable VoIP 4.2 Alternative providers 4.3 Telco VoIP

5. Forecasts 5.1 Forecasts - VoIP market to 2013 5.2 Notes on scenario forecasts

6. Related reports

Spurred by the lure of low cost, the unregulated and unprotected Internet–based telephone services are expected to produce major insurance losses according to a report issued by NJ-based telephone technology development and licensing company, Emerson Development.

The report, “VoIP Security Review: Insurance”, states that the discount VoIP telephone service, which is rapidly being adopted in the U.S. and throughout the world, is causing a shift from the reliable, secure traditional telephone network now in use, to an Internet environment of extreme risk.

As it becomes more prevalent, the report anticipates that VoIP will be increasingly attractive to those with malicious intent, and therefore will be progressively more vulnerable to hostile acts such as spying / espionage, hacking, intrusion, identity and intellectual property theft, and interruption of service. It points out that VoIP is exposed to all the cyber-risks of the Internet, plus unique risks related to voice communications such as eavesdropping on and recording of phone calls, or redirecting calls to an imposter organization (e.g., a hacker instead of a bank).

This is significant to the Insurance Industry because a growing range of insured user sectors are depending upon VoIP online telephone service. These sectors include, but are not limited to government, the military, manufacturers, the legal profession, the banking industry, the transportation sector, hospitals, pharmaceutical companies and medical practices, the not-for-profit sector, and private individuals in greater and greater numbers.

“Because of the Internet’s open architecture, every person and every system has direct access to one another,” the report’s primary author and CEO of Emerson Development, Mr. Harry Emerson states, “therefore,” he continues, “we all implicitly have a trusted relationship with every hacker and terrorist in the world”. This fundamental Internet architecture, the report explains, enables the broad range of cyber-security threats experienced today; VoIP, as an Internet application, has the same unavoidable vulnerabilities.

According to FBI Director Robert Mueller, in an April 23rd release, “The FBI considers the cyber threat against our nation to be one of the greatest concerns of the 21st century.”

Report co-author, risk-management expert Mr. Glenn Tippy, President and Managing Partner of Insurance Agency Gerrity, Baker, Williams Inc., anticipates that insurance carriers will increasingly price for Internet / VoIP telephone exposure. “Cyber insurance products will be created for users of VoIP, as well as for VoIP providers and vendors. The effects upon our economy will be profound,” he said.

Mobile VoIP is no longer just hype, but has become a credible threat to traditional voice revenues. Considering that it is only a matter of time until Internet protocol becomes the principal transport for various access technologies, an ambitious group of mobile VoIP start-up companies are creating a paradigm shift in the way users communicate with each other, with voice services moving to a true Internet era of Telco 2.0.

New analysis from Frost & Sullivan, Impact of Mobile VoIP on Next Generation Cellular Networks, finds that that at the end of 2008, approximately $605.8 million of mobile VoIP revenues were generated in North America, Europe, Asia Pacific and Latin America. This is expected to grow to $29.57 billion by 2015. The technologies covered in this research service are high-speed packet access, third-generation long-term evolution, global system of mobile communications, IP multimedia subsystem, HSPA+, general packet radio service, VoIP and SIP.

Significant traction in the application space, primarily driven by the success of the iPhone, has resulted in several smartphone vendors making provisions in their applications stores for users to download and use third-party VoIP clients over both WiFi and cellular broadband networks.

However, many cellular operators have prohibited the use of mobile VoIP over their cellular networks, with some imposing a surcharge to avoid cannibalisation of their circuit-switched voice revenue streams. Moreover, cellular operators face intense competition from the more popular Web-based VoIP alternatives that are permeating the mass market.

Mobile operators should eventually do away with imposing bans or surcharges to their mobile broadband packages to support mobile VoIP, as the client devices supporting HSPA+ and LTE will be based on open platforms and support SIP for third-party applications.

Infonetics Research releases its annual North America Business VoIP Services Leadership Matrix, which analyzes and ranks the top service providers in the North American hosted PBX and business IP connectivity services markets.

ANALYST NOTE

"This year the top ten providers in both the IP Centrex and business IP connectivity markets represent a broad mix of incumbents, cable operators, and competitive service providers. This cross-section of providers offers a good set of options for businesses looking at voice over IP services. Service providers hoping to succeed in this fast-growing market, particularly with hosted PBX, need to know that the most critical factors for success are financial stability, proven experience in hosted PBX deployments, and quality service and support. At this stage in this market, the fundamentals are much more important than the bells and whistles, especially when going after larger enterprises," emphasizes Diane Myers, directing analyst for service provider VoIP and IMS at Infonetics Research.

BUSINESS VOIP SERVICES MARKET HIGHLIGHTS

• There are over 100 service providers offering business VoIP services in North America
• Many of these providers have fewer than ten thousand IP Centrex subscribers or IP lines/trunks, and are content to sell their services within a small niche or geographic market
• The top IP Centrex service providers overall are, in no particular order: 8x8, New Global Telecom, and Verizon Business
• The top IP connectivity service providers overall are, in no particular order: AT&T, Cbeyond, and Verizon Business

REPORT SYNOPSIS

Service providers ranked in the North America Business VoIP Services Leadership Matrix include: 8x8, AT&T, BroadView Networks, Cbeyond, Comcast, Cox, Education Networks of America, Global Crossing, M5, New Global Telecom, Nuvio, Paetec, Smoothstone, Time Warner Telecom, Verizon Business, and XO.

The matrix ranks the top IP Centrex and IP connectivity service providers in North America based on criteria critical to determining market leadership, including number of IP Centrex subscribers and/or installed base of IP connectivity lines/trunks, financial stability, market strategy, service capabilities, and support options. The leadership matrix determines which service providers currently lead the market and are best positioned to succeed long-term.

The VoIP services matrix is an addendum to Infonetics Research's VoIP and Unified Communication Services and Subscribers biannual worldwide and regional market share and forecast report.

A VoIP services leadership matrix for service providers in EMEA (Europe, Middle East, Africa) will be published by Infonetics in August.

Research and Markets has announced the addition of the "Business VoIP Overview by Vertical Industry" report to their offering. This report is designed to be used in conjunction with the US Business VoIP Overview: Optimization Trumps Expansion, which provides survey findings and forecasts at a total US business level. Business VoIP Overview by Vertical Industry provides specifics by the professional services, education, government, and health care vertical industry segments, with the exception of forecasts, where education is rolled up into government.

New research from In-Stat reveals that the government vertical is among the strongest industry verticals for VoIP adoption. Based on In-Stats survey, 48% of respondents in government institutions report that VoIP is deployed in at least one location. The research reveals interesting distinctions among key vertical segments.

Overall, integration is more critical than cost savings, says Norm Bogen, In-Stat research vice president. However, cost is most critical in the education segment, while scalable features and capabilities are most important in the government segment.

The recent research by In-Stat also found the following:

• Verizon is the most cited Current Broadband IP Telephony Provider among government institutions, with a commanding lead over other providers.
• AT&T has the leading position as a provider of IP Centrex solutions across size of business and vertical markets.
• Cisco is the IP PBX market leader in all segments, but particularly in education.
• The Healthcare vertical is the strongest adopter of IP handsets.
• Hosted IP Centrex has appeal with government and healthcare segments, cited significantly more in these segments compared to the professional services or educational segments.

Recent In-Stat research, Business VoIP Overview by Vertical Industry covers the US business market for IP telephony by vertical.

It includes:

• Survey results of 1000 US business decision makers relative to IP telephony.
• Vertical segmentation by professional services, education, government, and healthcare.
• US Hosted IP Centrex Revenues.
• IP PBX Revenues.
• Broadband IP Telephony Revenues.
• Analysis of key VoIP market barriers and drivers for each vertical segment.

New research from In-Stat reveals that the government vertical is among the strongest industry verticals for VoIP adoption. Based on In-Stat’s survey, 48% of respondents in government institutions report that VoIP is deployed in at least one location. The research reveals interesting distinctions among key vertical segments.

The recent research by In-Stat found:

• Verizon is the most cited Current Broadband IP Telephony Provider among government institutions, with a commanding lead over other providers.
• AT&T has the leading position as a provider of IP Centrex solutions across size of business and vertical markets.
• Cisco is the IP PBX market leader in all segments, but particularly in education.
• The healthcare vertical is the strongest adopter of IP handsets.
• Hosted IP Centrex has appeal with government and healthcare segments, cited significantly more in these segments compared to the professional services or educational segments.

The research, Business VoIP Overview by Vertical Industry, covers the U.S. business market for IP telephony by vertical including:

• Survey results of 1,000 U.S. business decision makers relative to IP telephony.
• Vertical segmentation by professional services, education, government, healthcare.
• U.S. Hosted IP Centrex revenues.
• IP PBX revenues.
• Broadband IP telephony revenues.
• Analysis of key VoIP market barriers and drivers for each vertical segment.

In-Stat estimates the total number of mobile VoIP users will reach 288 million by the end of 2013. Of these, well over half will be associated with online mobile VoIP providers, under one-third will utilize mobile VoIP with 3G MVNOs or mobile operators, and 11% with WiMAX/LTE operators. On a geographic basis, mobile VoIP will be heavily biased towards the Asia Pacific region, particularly among the online mobile VoIP services.

Recent research by In-Stat found the following:

• In-Stat projects that by 2013 mobile VoIP applications will generate annual revenues of $35.2 billion.
• While the EMEA region has more mobile VoIP related revenue currently, Asia Pacific will be the largest regional market in revenue terms by 2013.
• Dual-mode handsets (Wi-Fi + Cellular) will be well over 400 million units shipped in 2013.

The research, “Mobile VoIP—Transforming the Future of Wireless Voice”, covers the worldwide market for mobile VoIP including:

• Analysis of VoIP’s impact on the mobile market.
• Forecasts for mobile VoIP associated revenue by region through 2013.
• Forecasts for mobile VoIP users and annual usage by region through 2013.
• Profiles of mobile VoIP startups.
• Profiles of VoIP providers.
• Profiles of WiMAX providers.

Reportlinker.com announces that a new market research report is available in its catalogue. The mVoIP market 2009-2014 - Successfully profiting from VoIP over mobile.

Report Details

• Skype Launch for iPhone Official, just announced
• Skype set to launch mVoIP with Blackberry Two brand new headlines just announced.

Latest news

Skype for sale?: Reports that the VoIP market leader Skype is up for sale on eBay have resurfaced in the market again. Will eBay offload the Skype from its portfolio? Is it acceptable for the eBay to sell Skype - its most valuable asset? - an analysis of the scenario is presented inside this report.

Google Voice

Google has stepped up the launch of Google Voice - which is perceived as threat to traditional networks and over-the-top market providers like Skype. An overview of what Google Voice and how does it work is available in the report.

BT to launch mobile VoIP

BT Inmo has bought a licence to globally market and sell mobile VoIP, based on a solution from the US firm Qnective. It is developing a mobile VoIP solution set for BT Global Services, which it will base on Qnective's Qtalk products. Skype's launch of its VoIP client for the Apple iPhone, and plans for another launch on the RIM's Blackberry platform in 2009, are the latest developments in the implementation of VoIP services on mobile phones, a market which has grown in importance recently. The introduction of 3G handsets and smartphones in the market and deployment of 3G and 4G network technologies have raised the prospects for all stakeholders of the telecoms industry, providing equal opportunities for growth for callable companies, traditional fixed-line operators, mobile operators, over-the-top market vendors and third-party application developers. The IP-convergence/substitution has made multi-service offerings in a unified communication environment possible; telecoms operators can now diversify their business from one area to a number of areas, where the mobile phone has emerged as a central device to connect end-users. mVoIP is now lining up to challenge the established technologies with the introduction of products and services that meet the needs of modern business and technology savvy consumers. Consequently, service providers are aggressively looking for ways to offer mVoIP to consumers. In the enterprise and SMB markets, IP-based and hosted IP telephony services are gaining in importance and are replacing TDM based products, ultimately leading to a complete take over. On the vendor side, traditional PBX vendors are being forced to develop products that are based on IP technology. Enterprise solutions are to provide the first commercially relevant mobile VoIP business. IP-based corporate PBX systems are already common, and mobile-only systems hold significantly less market share. Although there is some resistance so far by the mobile network operators to adoption of the VoIP on their networks, but deployment of the 4G technologies -WiMAX and LTE - in the near future is set to change the game for them as well. VoIP is expected to offer mobile operators significant business opportunity by allowing them to harness three powerful characteristics:

• they can cut infrastructure costs and service charges to better compete with fixed operators,
• they can expand their coverage by supporting access from WLAN access points, and
• they an offer richer communications services to their users.

The main players

With a nationwide spread of Internet, all players in the telecoms sector - long distance and local telephone companies, cellular operators, cable providers - are embracing IP-based services. The idea is to offer converged data, landline voice, mobile and video on a single platform from a single provider. Broadband and mobile internet is playing a key role in delivering of this 'triple-play' and now quad-play idea. The market will be dominated by three types of players:

• IT companies
• Cable companies
• Wireline carriers
• Wireless carriers
• mVoIP entrants
• Application developers
• Content providers
• Consumers (commercial and individuals)

What does this innovative brand new report deliver?

Implementation of VoIP on mobile:

There are more than one ways to access VoIP on mobile phone. Is mVoIP to be a voice service, running over the DSL/ broadband IP network, on a mobile phone? Or, Are over-the-top services - that users download onto their phones to connect to services providers which are not their primary mobile service provider - to be called mVoIP? This report will provide you an insight How big is the market opportunity? The market opportunity for mVoIP is as big as the ICT industry itself. This report will give you a complete insight of the ICT industry and market (for example broadband and internet penetration rate and telecoms services growth), with a special focus on the mobile phone industry i.e. subscribers growth, handset shipments, data growth, mobile broadband penetration, 3G uptake and developments and prospects for the deployment of 4G technologies in the future.

What will drive the mVoIP market?

The mVoIP has grown in importance. However, what will drive its future growth? This report analyses the factors that are going to influence the market and inspire its growth in the future. Can you afford to be miss out on the new emerging revenue opportunities?

The regional perspectives - The report gives an overview of the US, Canada, Europe and Asian ICT markets inspired by the robust growth in the mobile industry, with a special focus on China and India - the two countries that are driving growth in telecoms services globally.

Market reshaping developments - The report includes a separate analysis of the market reshaping developments that have taken place recently, and are set to influence and change the landscape of the mVoIP services market.

This unique one-off report delivers Interviews, quotes and critical leads in one easy to read, immediate access format. It ensures you reach the right conclusions and delivers analysis and forecasts to back up your planning.

Who should buy this report?

The companies that are involved in this market include:

• Cable companies;
• Fixed-line operators;
• VoIP service providers;
• Mobile operators;
• VoIP equipment manufacturers;
• Handset makers (Nokia, Motorola etc), as well as WLAN handset makers (Cisco, Avaya etc); and
• Internet and wireless Internet service providers (WISPs).
• Third-party application developers
• IT companies (i.e. Google and Microsoft)
• Internet, landline, wireless and mobile technologies developers and participants
• Broadband services and solutions providers
• Telecoms regulators
• Public telephony services providers
• Online application stores
• Content solutions providers
• Enterprises
• Investment companies

Mobile VoIP is moving beyond its initial function as a new mechanism to get inexpensive international calls, reports In-Stat. While Mobile VoIP still poses a direct threat to operator voice revenue, it also represents a dynamic new capability that promises numerous applications. In-Stat projects that by 2013 Mobile VoIP applications will generate annual revenues of $32.2 billion, driven by over 278 million registered users worldwide.

One new application integrates Mobile VoIP into a unified mobile interface to social networking sites. In another new development, MVNOs and 3G operators without legacy networks are using Mobile VoIP to more cost effectively add voice to data offerings. In yet another scenario, a few carriers are using a form of Mobile VoIP, UMA, to support better indoor coverage and off-load macro networks.

“Applications such as Skype and Vonage have influenced users to think of voice as a data application,” says Frank Dickson, In-Stat analyst. “The increasing penetration of Wi-Fi in mobile devices was the beach head that Mobile VoIP applications needed. As user habits are being shaped by rich on-line communication experiences, mobile carriers control over devices and data applications is waning. Mobile carrier attempts to slow the spread of on-line Mobile VoIP are proving challenging as well.”

Recent research by In-Stat found the following:

• Activities associated with early Mobile VoIP successes are likely to influence LTE operator voice plans in ways that potentially favor IMS.
• While the EMEA region has more Mobile VoIP related revenue currently, Asia Pacific will be the largest regional market by 2013.
• Dual-mode handsets will approach nearly 400 Million units shipped in 2013.
• Revenue and users associated with Mobile VoIP will be distributed among online Mobile VoIP services, 3G-Based Mobile VoIP offerings, and WiMAX/LTE Mobile VoIP offerings.

The research, “Mobile VoIP—Transforming the Future of Wireless Voice”, covers the worldwide market for mobile VoIP including:

• Analysis of VoIP’s impact on the mobile market.
• Forecasts for Mobile VoIP-associated revenue by region through 2013.
• Forecasts for Mobile VoIP users and annual usage by region through 2013.
• Profiles of Mobile VoIP start ups.
• Profiles of VoIP providers.
• Profiles of WiMAX providers.

Communications market research firm Infonetics Research launched a new North America Business VoIP Services Leadership Matrix that analyzes and ranks the top service providers in the VoIP business services market.

"In the aggressive North American business VoIP services market, Verizon Business stands out as the market leader in both IP Centrex and IP connectivity services. Still, in this highly competitive market, a number of providers, such as New Global Telecom and Cbeyond, are finding success in offering compelling solutions for businesses," said Diane Myers, Infonetics Research's Directing Analyst for Service Provider VoIP and IMS.

MATRIX REPORT HIGHLIGHTS

• Verizon Business scores highest in Infonetics' leadership matrix for IP Centrex services and IP connectivity services due largely to its strong financial stability
• New Global Telecom ranks second overall for IP Centrex services, with the largest number of IP Centrex subscribers in North America and an outstanding market strategy
• In the IP connectivity services market, closely following Verizon Business, are Cbeyond and Paetec
• Other service providers in the leadership matrix rankings: 8x8, Alteva Networks, AT&T, BroadView Networks, BroadVOX, Comcast, Covad, Global Crossing, iCore Networks, Level 3, Time Warner Telecom, and XO

REPORT SYNOPSIS

The VoIP service provider leadership matrix is a new addition to Infonetics' VoIP and UC Services and Subscribers biannual market share and forecast report; all subscribers to this report have access to the leadership matrix.

The leadership matrix ranks the top 10 IP Centrex service providers and top 9 IP connectivity providers in North America based on criteria critical to determining market leadership, including number of IP Centrex subscribers and/or installed base of IP connectivity lines/trunks, financial stability, market strategy, service capabilities, and support options.

In addition to the new service provider leadership matrix, Infonetics' VoIP and UC services and subscribers report provides worldwide and regional market size, forecasts through 2013, and analysis of residential and SOHO VoIP services, business VoIP and UC services, and residential/SOHO VoIP subscribers. Business voice services are tracked by hosted IP Centrex, hosted UC, managed IP PBX, and IP connectivity (voice VPN/IP access, SIP trunking, and IP integrated access).

Consumers looking to cut costs without sacrificing satisfaction for Internet, television, and telephone service should consider bundling with Verizon FiOS or AT&T U-verse. In Consumer Reports' latest survey of major telecom providers and bundled services, featured in the February issue, Verizon FiOS and AT&T U-verse, whose networks are fiber-optic based, were the most consistently satisfying providers for their Internet, television, and telephone services.

Because Verizon FiOS and AT&T U-verse are not available everywhere, many consumers must consider other options for Internet, phone and TV services. The article also includes Ratings of these three services, which are typically bundled, from various providers.

In areas where telco-delivered service is not available, a highly-rated cable company is the next-best choice for many households. Consumers may not have an option when choosing a cable provider because a majority of homes only have one cable company available in their area. According to Consumer Reports' survey, better cable companies include Cox, Cablevision and the smaller Bright House and Wow, which are fine alternatives to fiber-optic service providers for all three services in areas that they are available and also offer Internet and telephone services.

If television service is a priority and fiber-optic service isn't available, satellite service may be a fine option. Consumer Reports suggests opting for a bundle that includes DirecTV. It scored higher than all the major cable companies and Dish Network, the other major provider of satellite service, for TV picture, sound and channel selection. It is also offered in hybrid bundles along with DSL Internet and landline phone service from some telephone providers.

Bundling Prices Decline

Intense competition for cable and satellite customers between AT&T U-verse and Verizon FiOS high-speed fiber providers has driven down rates for Internet, phone and TV service and is likely the reason that companies allow these savings to continue past the promotional period. In the past year, bundles of the three services have dropped in price by up to 20 percent, to as low as $80 a month.

Bundling makes sense for many households, especially for those consumers who are served by one of the fiber carriers or one of the better cable companies. Consumer Reports' latest survey found that subscribers were very satisfied with Internet, phone and TV from the best telecom providers. However, bundling doesn't come without some problems. The survey revealed a high incidence of complaints about billing, and fees with some providers' triple-play packages. Despite its high marks overall, Verizon FiOS was below average for customer service to its triple-play customers. Cable companies that bundle services had fewer customer-service problems overall.

How to Choose

• Check alternatives. Only a small percentage of homes have two cable companies to choose from; most only have one. Satellite is more widely available, provided a home has an unobstructed view of the horizon to the southwest. DSL is widely available in urban and suburban neighborhoods. While fiber-optic service, such as Verizon FiOS and U-verse from AT&T, is spreading fast, it is still only available in about 8.5 million homes in about one-third of the states.
• Weight the case for bundling. With most providers, signing up for more services equals more savings. Bundles allow for integrated services, such as display of callers' phone numbers on the TV screen, which is offered with some phone/cable packages. Triple-play offers often come sweetened with more extras, such as free installation. Consumers may also be guaranteed low rates for a longer period of time with triple-play than when subscribing to services one at a time.
• Don't rule out a la carte. Taking fewer than three services from any one provider allows flexibility. Spreading service among a few carriers also eliminates the possibility that a network or equipment failure will knock out all telecom services. Although bundles usually ensure maximum savings, Consumer Reports found at least one instance where the cost of the service taken individually was actually lower than when it was part of a package.
• Consider phone safety. Cable VoIP and fiber phone service require a battery back-up to use during power outages. These battery backups may be provided or have to be purchased for an additional fee. Additionally, if an outage lasts longer than the battery backup, consumers may be left without a phone for the remainder of the outage. Emergency 911 service varies among technologies. Consumer Reports recommends supplementing VoIP service with basic landline service for use in 911 calls.
• Fine-tune by other attributes. Consumer Reports Ratings reveal that providers differ in more than their customers' overall satisfaction. Consumers should determine which TV providers carry programming they desire. Keep in mind that fiber and satellite usually have a termination fee but cable does not.

How to Get the Best Price

• Check rates, then check again. Consumers should scour the provider's Web site for the best deals, and ask a customer rep if the price quoted is the company's absolute best offer. Consider checking again. Consumer Reports found that rates could change, seemingly by the representative who took the call.
• Negotiate. It can pay off, particularly in areas where there's competition between a cable provider and a traditional telephone company, and when a promotional rate is expiring. Ask for a reduced price or free extras, such as installation or a premium channel at no cost.
• Ask for sample bills. Before finalizing a deal, ask for a summary of all charges for the first and subsequent months. Confirm that the figures include all taxes and fees, and one-time expenses such as a charge to keep an existing phone number. Try to get all the information in writing. Check the figures later against the actual bills.
• Fine-tune extras. As a rule, consumers shouldn't pay more for higher-speed Internet service unless they are doing a lot of downloading or sharing of lengthy videos or other very large files. Most VoIP and fiber-based phone plans include caller ID, answering service, and unlimited local and long-distance calling in the U.S., Canada and Puerto Rico, and sometimes other countries. Check that these features don't disappear or that the bill doesn't increase once the promotional period ends.

The complete report and Ratings are available in the February 2009 issue of Consumer Reports.

Large RBOCs and ILECs are scaling back on VoIP equipment purchases, helping bring down the worldwide service provider VoIP market 8% sequentially to $816 million in 3Q08, says market research firm Infonetics Research in a new report.

The overall market weakness in 3Q08 was led by a steep decline in the high density media gateway segment, as well as a dip in the softswitch segment, according to the report, Service Provider VoIP and IMS Equipment and Subscribers.

On the positive side, sales of session border controllers and media servers were up in 3Q08, although not enough to offset losses in other segments in the next gen voice market.

"Third quarter service provider VoIP equipment sales confirmed what we started seeing in the previous quarter: in North America, carriers were already slowing their VoIP investments after completing major projects; in Western Europe and some parts of Asia, such as South Korea, inventories were already high. The quarter also reflects the global economic downturn, which is turning the expected VoIP deployment dip into a drop. New VoIP projects will be postponed at best, and some may be cancelled altogether, as more consumers ditch their fixed lines, thus cutting the need for wireline upgrades. As such, we are predicting a 2-year pause in the overall carrier VoIP space, with a pick up expected in 2011," said Stéphane Téral, principal analyst for VoIP and IMS at Infonetics Research.

Other highlights from the report:

• Year-over-year (from 3Q07), softswitches, SBCs, and media servers are up
• Cisco shook up the worldwide trunk media gateway market with a 37% sequential jump in revenue in 3Q08, propelling them to the #1 spot, followed by GENBAND and Huawei
• Nortel maintains its #1 position in the worldwide softswitch market
• Cable MSOs are likely to postpone PacketCable 2.0 deployments for residential VoIP due to tough economic conditions
• Given how bad the current economic turmoil is, the 5-year outlook for service provider next gen voice is decent
• Voice over broadband (VoBB) will continue to be the big driver across the board

Infonetics' report tracks VoIP subscribers and carrier VoIP equipment, including high-, mid-, and low-density trunk media gateways, SBCs, media servers, class 4 and class 5 softswitches, and IP Centrex/hosted IP PBX, IP trunking, and residential voice application servers. The report also tracks fixed-line and mobile network IMS core equipment, including HSS, CSCF servers, media resource function, breakout gateway control function (BGCF), application servers, and PSTN gateways.