***TeleGeography Exclusive: 6.9 million US VoIP subscribers***

9 Aug 2006

The second quarter update of TeleGeography’s US VoIP report shows that VoIP-based service providers continued their furious assault on the fixed-line voice market. While quarterly subscriber growth slowed from 28% in the first quarter to 21% in the second, the slowing rate reflects the increasing size of the VoIP subscriber base. VoIP service providers gained 1.23 million new subscribers, comparable to subscriber gains in the first quarter, and finished the quarter with 6.9 million subscribers, a 153% increase from the second quarter of 2005.

Vonage remains the leader of the consumer VoIP market with nearly 1.8 million subscriber lines, followed by Time Warner Cable, which has just under 1.6 million subscribers. Vonage and Time Warner have followed similar growth trajectories in recent quarters: Vonage added 243,000 lines in the second quarter, while Time Warner added 234,000 lines. Cablevision remained the third largest VoIP service provider, with 987,542 subscribers, up from 865,000 at the end of the first quarter. Comcast, which had thus far taken what might be described as a “measured” approach to the VoIP market, stepped on the gas in the second quarter. The company gained 305,000 new VoIP customers, a blistering 73 percent increase from only three months earlier. Comcast finished the quarter with 721,000 VoIP lines in service. On the basis of recent subscriber growth trends, Comcast is on track to overtake Cablevision as the third-largest VoIP provider in the fourth quarter.

For more information on this product, including how to subscribe, please visit www.telegeography.com/products/us_voip/index.php

United States
TeleGeography's U.S. VoIP 2006—Q2 2006 Update