VoIP continues to gain subscribers in the home telephone service market, according to Telephia. Households subscribing to pure-play subscription VoIP services, who are either replacing or complementing existing traditional landline services, increased from 2.2 million in Q1 2006 to 2.9 million in Q2 2006. Voice over Internet Protocol (VoIP) continues to gain subscribers in the home telephone service market, according to Telephia. Households subscribing to pure-play subscription VoIP services, who are either replacing or complementing existing traditional landline services, increased from 2.2 million in Q1 2006 to 2.9 million in Q2 2006.

Vonage continues to own the largest market share of pure-play subscription VoIP consumers with a 53.9 percent share. Telephia's Total Communications Survey for Q2 2006 shows that Verizon VoiceWing and AT&T CallVantage were tied for second place, each securing a 5.5 percent share. SunRocket followed with a four percent share, while Lingo claimed a 2.6 percent share. NetZero Voice rounded out the top five with a 2.5 percent share.

Rankings for the top pure-play VoIP providers are based on subscription services, and exclude market share for free or pay-per-call VoIP services (e.g. Skype) as well as "digital" phone service offered by cable companies.

"With a large share of U.S. households now connecting via broadband networks, VoIP has become a popular and cost-effective alternative for replacement, as well as a complement to the traditional home landline," said Kanishka Agarwal, Vice President of New Products, Telephia.

Network Quality is the #1 Reason Why VoIP Subscribers Are Likely to Switch Providers

More than 27 percent of VoIP subscribers who are likely to change providers cite network quality as their primary reason for wanting to switch (e.g., better voice-audio quality, fewer disconnected/blocked calls). Improved customer service and better plan prices are also critical factors in why subscribers want to switch service providers. In addition, more than 12 percent of all VoIP subscribers are likely to leave their current VoIP service provider for another supplier within a year.

"The VoIP market is highly competitive with many different players trying to get a bigger slice of the market share. Service providers who offer the best customer experience through superior product quality and excellent customer service will beat out their competition," added Agarwal.