1 mln US VOIP subscribers by year-end 2004

According to the Yankee Group VoIP will have close to 1 million subscribers by year-end 2004, and serve 17.5 million U.S. households by year-end 2008, growing from 131,000 at year-end 2003. Although Vonage dominates the market, cable MSOs will take the lead quickly. Cable MSOs will capture 56% of the U.S. local VoIP market by year-end 2005, while market share for the alternative voice provider category will decrease from 66% in 2003 to 19% in 2005. VoIP will drive cable telephony efforts and surpass circuit-switched cable telephony in 2006; by 2008, cable MSOs? share of the local telephony market will reach nearly 10%.