The US Market for Converged Voice Services

Will wireline operators wither away to nothing? Are we destined to live in a wireless-only world? In-Stat primary research debunks both of these outcomes by showing that most US broadband consumers prefer a converged voice service (CVS) that offers a common set of features/functions across independent fixed and mobile network infrastructures.

CVS can eliminate fixed-line subscriber losses, increase mobile ARPU, and replace declining PSTN revenues with a stable long-term voice revenue stream. Best of all, CVS is a next-generation voice service that consumers want and will pay for. This is not a vendor hyping a new technology, or an operator hawking their latest application. This report offers a glimpse of the real-world. CVS has the potential to kick-start the market for next-generation applications. Whether you are planning to introduce next-generation voice services, or not, this report will prepare you for the future of voice communication.

Executive Summary

Introduction

Converged Voice Service Product Requirements

Consumer Demand for CVS in the US

CVS Market Assessment

Why is CVS So Appealing to Consumers?

Which Broadband Consumer Households Will Be First to Buy?

Does CVS Pose a Competitive Threat to the Triple-play?

How Does CVS Fit into the Wireline Product Portfolio?

How Does CVS Fit into the Mobile Product Portfolio?

How Big is the CVS Market in the US and Canada?

Why Invest in New Technology that will Cannibalize Existing Revenue?

Methodology

Conclusion

Glossary

Related In-Stat Reports

Appendix

US Consumer Household Segmentation—Wave 1 and Wave 2

Teens & Twenties

Empty Nesters

Wired, Wireless & Wealthy

Broadband Boomers

Toddlers & TiVos

Deals & Discounts

List of Tables

Table 1. CVS Product Elements

Table 2. Consumer Voice Preferences by Technology Adoption Category

Table 3. Consumer Voice Preferences by Age Group

Table 4. Consumers Overwhelmingly Prefer Unified Messaging

Table 5. Consumers Strongly Favor Unlimited LD Calling

Table 6. The Majority of Consumers Favor Network Address Books

Table 7. Consumers Favoring CVS Prefer Using a Variety of Telephone Types

Table 8. Over 70% of BB Consumer Households Have a Service Bundle

Table 9. Consumers Want VoIP within a BB Service Bundle

Table 10. Consumers Prefer Flat-Rate Billing

Table 11. Consumer Voice Preferences by BB Households Segment

Table 12. Interest in Changing Operators to Purchase CVS

Table 13. Interest in Purchasing CVS Separately if Current BB Suppliers Do Not Offer It

Table 14. US CVS Market Forecast

Table 15. Canada CVS Market Forecast

Table 16. Household Size of Survey Respondents

Table 17. Education Level of Survey Respondents

Table 18. Survey Respondent Annual Household Income (US$)

Table 19. Teens & Twenties Key Attributes

Table 20. Empty Nesters Key Attributes

Table 21. Wired, Wireless & Wealthy Key Attributes

Table 22. Broadband Boomer Key Attributes

Table 23. Toddlers & TiVos Key Attributes

Table 24. Deals & Discounts Key Attributes

List of Figures

Figure 1. US Broadband Consumer Preferences for Voice Communication

Figure 2. US Broadband Consumers Prefer Converged Voice Services

Figure 3. Broadband Consumers Prefer an Integrated Mobile/Fixed Operator

Figure 4. Interest in Purchasing All Services from One Operator

Figure 5. Willingness to Pay $20 per Month above Current Mobile Expenses

Figure 6. Value of Services to US BB Consumers

Figure 7. Survey Respondents by Age