Forrester

Why Read This Report

Residential broadband telephone lines will grow by 10.8 million, or 46%, over the next five years; this forecast includes managed voice over Internet protocol (VoIP) services offered by cable multiple system operators (MSOs) and telcos, as well as over-the-top VoIP services offered by companies like Vonage. Bundle offers, unified communications services, and integrated features will enhance the appeal of these types of VoIP lines. However, voice is now a commodity, and there are ample ways for people to communicate these days without the use of a fixed landline phone — cell phone, SMS, PC-enabled voice chat, email, and social networking sites like Facebook, to name but a few. Given that, consumer product strategy professionals must be prepared for price reductions — and the resulting lower ARPU — in order to prevent existing customers from defecting to a competitor or eliminating their fixed voice service altogether.