Consumers Want Comfort Brands To Supply VoIP

Over the next 12 months, the number of consumers using Voice Over Internet Protocol (VoIP) to make phone calls will exceed 4 million, according to Continental Research’s Autumn 2006 Internet Report, and future users are looking to “comfort” brands such as BT, 02 and Sky to deliver the service, over current dominant market-leader Skype.

[UKPRwire, Mon Nov 06 2006] Over the next 12 months, the number of consumers using Voice Over Internet Protocol (VoIP) to make phone calls will exceed 4 million, according to Continental Research’s Autumn 2006 Internet Report, and future users are looking to “comfort” brands such as BT, 02 and Sky to deliver the service, over current dominant market-leader Skype.
To understand more about which companies appeal as a VoIP provider, all Internet users were asked:
“If you were to get/or get a new VoIP (making Internet phone calls) service, how comfortable would you be in using the following companies as a VoIP supplier?”
Attitudes to potential VoIP suppliers
Mean score out of 10: 1 = not at all comfortable, 10 = very comfortable
All Internet users VoIP users
BT 6.4 6.4
O2 5.4 5.7
Sky 5.3 5.3
Vodafone 5.3 6.0
Orange 5.2 5.6
MSN 5.0 6.2
Virgin 4.9 5.3
Skype 4.7 7.4
Carphone Warehouse 4.2 4.7
Wanadoo 4.1 4.4
Nortel 3.5 4.0
Vonage 3.4 4.1
Base: online survey: Internet users (1268), VoIP users (208)

James Myring at Continental Research said: “The comfort of a familiar name is more than apparent. Internet users rate traditional companies such as BT, O2 & Sky more highly as a potential VoIP supplier than Skype. Fortunately for Skype, amongst VoIP users it does rate well, and being first in the market place coupled with the power of word of mouth will help enormously to raise its profile.”



Skype is by some distance the dominant brand for top of mind awareness, but much less so amongst all Internet users than amongst a sample of VoIP users. In the longer term the relatively low awareness of Skype amongst non VoIP users may make it vulnerable to a more established brand such as BT pushing their own VoIP offering.

Spontaneous awareness of VoIP providers
All Internet users VoIP users
Skype 25% 73%
BT 10% 12%
Tesco 7% 13%
MSN 5% 26%
AOL 3% 7%
Yahoo 2% 7%
Vonage 2% 3%
NTL 1% 2%
Don’t know 57% 11%
Base: online survey - Internet users (1268), VoIP users (208)


Usage of VoIP Providers
Amongst current users, over half use Skype for VoIP calls making it the market leader and placing it in an exceptionally strong position in a dynamic market. However if VoIP continues to grow strongly traditional telephone (including mobile) and Internet providers (such as BT) will surely seek to significantly increase their market share.

Provider used to make calls over the Internet

Base: online survey: all who have made VoIP call in the last 12 months 208




Future growth of VoIP
The future does look promising for VoIP, as there is considerable interest in the service from non users.

Likelihood to start using VoIP in next 12 months
Base: online survey: all who haven’t made a VoIP call in the last 12 months 1978

From this data it can be estimated that in addition to the 1.7 million current VoIP users, a further 2.9 million Internet users will try VoIP in the next 12 months. Therefore in the next 12 months the number of Internet users using VoIP should exceed 4 million.

James Myring added: “Clearly many consumers would like to try VoIP. However the relatively slow growth thus far suggests that the technology needs to become more ‘consumer friendly’ so that experimentation with VoIP does not require a high level of proficiency with IT.

“Encouragingly the majority of users expect to increase the amount they use VoIP in the next 12 months. Current users’ increased calling behaviour is likely to account for a large part of VoIP call volume growth in the next 12 months.”

Time spent making telephone calls via the Internet in the next 12 months
Base: online survey - all who have made a VoIP call in the last 12 months 123, 208

At present a significant number of VoIP users are using the service almost exclusively for international calls. Myring observed “An obvious next move for VoIP is to target the mobile call market.”


Also in the report:

• More VoIP analysis
• Home internet access and usage via a PC
• Work internet access and usage
• Total internet access (home/work/school or college)
• Broadband penetration and forecasts
• Online purchasing behaviour
• Online activities


Report Subscriptions

Further analysis of any of the data reported in this Internet Report is available on request, contact: james.myring@continentalresearch.com.

Besides the Internet Report, Continental Research also provides reports on the following markets:

• Mobile phone Report £175 ex VAT
• Digital TV £175 ex VAT

All three technology reports (Internet, Digital TV and Mobile) can be purchased for the price of two: £350 ex VAT. Continental also publishes a separate report on digital convergence across different platforms price: £400 ex VAT



For further information:
Amanda Harrison
01296 660 294
hello@amandaharrisonmedia.co.uk


James Myring
020 7490 9129
james.myring@continentalresearch.com