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Survey: Skype leads way in VoIP traffic

Wed, 08/10/2005 - 8:00pm

Copyright 2005 World Markets Research Limited;

All Rights Reserved

World Markets Analysis

August 11, 2005

By Adrian Baschnonga

From Lexis Nexis

Research from Canadian broadband vendor Sandvine has shown that VoIP provider Skype is responsible for 35 percent of Internet telephony calls in the U.S.

Sandvine, which makes equipment that identifies types of network traffic, also revealed that Skype customers make longer calls than customers of rival services, since Skype accounts for 46 percent of stateside VoIP minutes. Skype was measured against some 1,100 rival Internet telephony providers, with VoIP services from AOL, Microsoft and Yahoo! all coming a "distant second," according to Sandvine.

Of third-party VoIP providers, broadband Internet service providers lead the way with an 18 percent share of all VoIP minutes on their networks, followed by Vonage, Primus and AT&T CallVantage.

Significance: The first six months of 2005 have seen strong VoIP take-up in the consumer market and represents a low-bandwidth, high-revenue opportunity for broadband service providers. Skype's offering has proved a key global growth driver, and the firm currently has offices in Estonia, London, San Francisco, South Korea and Japan.

As of the beginning of August, Skype's software had been downloaded 145 million times worldwide, and the company claims to have 47 million people using its services, largely the result of viral marketing. Rumors had circulated that Rupert Murdoch's News Corp. was in talks to buy the VoIP players for US$3 billion, but a deal never materialized.

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