Residential voice over IP (VoIP) has clearly come into its own in the US as major telecommunications carriers begin to roll out service offerings to give themselves a competitive edge. Fuelled in part by consumers looking to add value to their telephony service, a new IDC report - ' U.S. Residential VoIP Services 2005-2009 Forecast and Analysis: Miles to Go Before We Sleep'- forecasts that the number of US subscribers to residential VoIP services will grow from 3mn in 2005 to 27mn by the end of 2009.

Although it has been slow to develop in the U.S. and elsewhere, VoIP is finally beginning to show its potential in the consumer market. Much of the recent success is the result of marketing VoIP services on the basis of price. However, carriers will need to educate residential users on the features and functions of VoIP service to avoid a pricing war. Integrating applications and enabling convergence are critical capabilities that carriers will need to offer in the years ahead.

"VoIP must prove that it is more than just a cheap replacement for POTS", said William Stofega, senior analyst in IDC's VoIP Services Research programme. "To do this, carriers will need to offer services that are compelling and affordable. The winners will use the flexibility of IP to design services that differentiate themselves from their competitors. However, it is important to remember that the market for VoIP services is still in the very early stages of development and carriers and equipment vendors need to plan for a marathon".

Although the market is already crowded with traditional and next generation carriers, IDC believes that even more service providers, including cable MSOs, will launch consumer VoIP products and services in 2005.

www.idc.com