Hurdles Remain In VoIP Adoption

New York — A pair of surveys of the residential VoIP market, concluded recently, paint a mixed picture of the upstart telephony technology. On the one hand, early adopters report satisfaction with the service, yet mass-market consumers are not ready to make the leap and are even wary of the lower prices.

A Level 3 Communications-sponsored consumer research survey found that while VoIP awareness had increased, less than half of respondents were familiar with VoIP. Furthermore, Level 3 noted that the current strategy of marketing on price has failed to move the business “across the chasm” to mass-market adoption. In fact, “potential buyers view heavily discounted services with skepticism.”

To spur purchasing, the company bounced 39 promotion offers off of respondents and noted that only five prompted an interest in switching (see inset). “Offers that increased purchase interest contained three common elements: first, they had a net present value of at least $100; second, they included 'switch-back' guarantees; third, they contained an element to motivate longer-term loyalty,” the report stated.

According to a survey of leading adopters from ChangeWave Research, VoIP use continues to climb with 34 percent of responders indicating they use VoIP as a primary line. Among VoIP users, Vonage remains atop the pack but its lead is eroding in the wake of an upsurge in cable and telecom VoIP adoption. Vonage was used by 31 percent of survey respondents followed by Skype with 19 percent, “cable company” at 16 percent and 8x8 with 6 percent.

Despite losing share, Vonage and Skype users are the least likely VoIP users to switch providers, the survey said. All the major services enjoyed high ratings in customer satisfaction, with 8x8 registering the most improvement over a previous survey.

Among the winning upstarts, ChangeWave noted that Verizon is positioned to gobble VoIP share in 2006 with most of the survey respondents singling out the telco as the top provider for those looking to switch VoIP services.

Top 5 Promotional Offers That Increased Purchase Interest

1. Sign up for VoIP and get one or more communications service FREE for one year.

2. Sign up for VoIP and receive a consumer product of high net perceived value FREE each month for a year.

3. Sign up for VoIP and get the first six months FREE.

4. Sign up for VoIP and get your choice of a FREE gift with a prepaid or multiyear plan.

5. Sign up for VoIP and get a FREE phone for life after paying 12 monthly installments of $83.50.