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Vonage Tops In VoIP Sub Report

7/27/2006 02:41:00 PM Eastern

San Francisco, Calif. — VoIP subscriptions climbed almost 32 percent from the first quarter to the second quarter of 2006, according to a new report from the market research firm Telephia.

The firm’s Total Communications Survey covered “pure-play” VoIP companies but did not count services offered from cable companies or those billed as “digital voice.” It also excludes free services and pay-per-call offerings.

In this universe, Vonage dominates. According to Telephia, Vonage owns 53.9 percent of the market. Its next closest competitors — Verizon’s VoiceWing and AT&T’s CallVantage service — trailed a distant second with 5.5 percent of the market each. Virginia-based SunRocket was third with 4 percent of the market, followed by Lingo (2.6 percent) and NetZero Voice (2.5 percent).

Total pure-play VoIP subscriptions increased from 2.2 million in the first quarter of 2006 to 2.9 million in the second.

The survey also noted that 12 percent of all VoIP subscribers would likely leave their current provider for another service within a year. Of those looking to switch, 27 percent cited network quality, improved customer service and better priced plans as the main motivators to churn.