Phone Giants Are Projected to Dominate Internet Calls

June 15, 2004 | Source: New York Times

As much as 30 percent of homes in the United States and Britain could subscribe to Internet-based phone services in the next three years if major telecommunications companies offer services similar in price and quality to traditional phone connections, according to a new survey.

The findings suggest that the market for low-priced Internet phone services will most likely be dominated by phone companies, cable providers, and possibly local phone carriers.

According to IDC, nearly 600,000 consumers in the U.S. are expected to subscribe to Internet calling services by the end of the year.