VoIP Battlefield Problem

Voice over Internet providers continue to purchase equipment, but there is a VoIP battlefield problem.  Yes, the companies that manufacture the gear for VoIP have growing sales, but sales are not growing at the rate most had hoped for.

Nortel Networks and Sonus are the companies that sell most of the VoIP equipment to the phone carriers.  Because buying by voice over Internet providers is slower than expected prices for the gear has pulled back and that means lower profits for the makers.

Even though VoIP has been embraced by many consumer and business users, it seems a majority of the population is satisfied with cell phones and don't find an urgent need for residential VoIP phone services. 

  ViaTalk - Broadband Phone Service

The good news for local phone companies and the Internet is that households in the United States using VoIP have jumped from 2 million to 4 million.  Industry experts predict that the number of VoIP users will hit the 20 million mark by the year 2010.

When VoIP first become practical it was believed that many local phone companies would chuck the traditional equipment used for connecting phone calls and switch to VoIP.  However, the growth of VoIP is much slower than expected.  The slow down is a disappointment, but VoIP gear is still a growing slice of equipment manufacturers revenue.

The popularity of cell phones and other forms of wireless communications have certainly been a factor in the slow adoption of voice over Internet phone service.  That is reflected in the fact that the number of traditional; phone lines has been declining as more consumers give up their wired telephones in favor of cell phones, and that includes the wireless internet cell phone.

 Lower prices and slower sales mean that VoIP equipment manufactures are just not seeing the cash flow they had expected from telephone companies sales. But wait, all is not lost.  Equipment manufacturers expect sales to climb soon as traditional carriers complete their expensive fiber networks. 

The fiber lines will provide better broadband quality and that is a major requirement for the users of voice over internet services.  That fiber optic upgrade is expected to result in VoIP becoming the standard for voice communication within the next few years.

When you take a broad view of the situation you can see that the VoIP Battlefield problem will soon be resolved and both gear makers and service providers can share in this robust market.

Voip battlefield problem