Hosted VoIP Grew 21 Percent Between 2009 and 2010, FCC Says

By Stan Baldwin
Updated: March 25, 2011

The Federal Communications Commission released its latest report on competing local telephone services March, 2011. Three categories of providers: Incumbent Local Exchange Carriers (ILECs), Competitive Local Exchange Carriers (CLECs) and Mobile Telephony providers have been tracked for many years. In response to the growing significance of VoIP, the FCC added Interconnected VoIP providers to the required reporting in December 2008.

The figures, provided for the year ending in June 30, 2010, note that, while VoIP wireline connections increased by 21% over the year, there was also a decline in the number of retail switched access lines of 8% (approximately 11 million fewer connections). The overall combined effect was a decrease of 4% in wireline retail local telephone service connections. The implication is that more people are foregoing land lines as their primary telephone access for cellular service, even as the number of VoIP connections increases.

Of the 28,895 interconnected VoIP service connections, the great majority (by almost seven to one) are residential rather than business. It appears the market ahead for business services based upon VoIP justifies the large number of companies either currently providing services or planning to enter the business.

The report goes on to provide details of telephone connectivity across the country, by business or residential, ILEC and non-ILEC, by technology, and whether retail or wholesale. This is mandatory (and fascinating) reading for the marketing teams at every telephony service provider.

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