As the Voice over Internet Protocol (VoIP) market moves to maturity from its early-adopter phase, mass-market consumers need to be convinced of the service benefits of VoIP. Enhanced services likely to influence the public's strong interest in broadband and PC usage are replacing traditional circuit-switched telephony.

New analysis from Frost & Sullivan, North American Residential VoIP Services Markets reveals that revenues in this industry totalled $1.22 billion in 2005 and estimate to reach $13.2 billion in 2012.

"The residential VoIP market is moving to mass-market consumers who are not interested in technology and novelty; they are looking at VoIP-based services based on convenience, control, and cost," explains Frost & Sullivan senior analyst Lynda Starr.

Service providers are offering bundles of services that leverage their core competencies with enhanced services. This includes the entry of Internet service providers (ISPs) with softphones that leverage their customer bases and existing features.

"VoIP-based calling is becoming user-friendly and is moving toward a convergence of services in conjunction with the television and PC and also with mobile applications," explains Starr. "The applications and the many uses of VoIP-based services, rather than the technology itself, will drive their adoption and in order to attract the mass-market consumer to them, they must be easy to use and the service providers are making the effort to achieve that goal."