Thursday, July 5, 2001

Internet Call Waiting Growth Report

Introduced just three years ago, Internet call waiting faces serious threats from broadband technologies, including DSL. Despite the uncertainty regarding its long-term future, however, IDC forecasts strong growth for the technology during the next few years. According to the global market intelligence and advisory firm, Internet call waiting service revenue in the U.S. residential market will increase from $42.4 million in 2000 to $612.1 million by 2005.

"The future of Internet call waiting is closely linked with broadband technologies," said William Stofega, analyst for IDC's Residential Telecommunications Services program. "Widespread broadband adoption is likely to seriously limit the need for Internet call waiting services in the next few years."

However, according to IDC, equipment and service providers may be able to breathe continued life into Internet call waiting by integrating the technology into their next-generation communications platforms. For now, the ILECs are not giving up on Internet call waiting services, with most moving forward with plans to expand the service throughout their regions.

"Service providers view Internet call waiting as a part of their migration strategy. It pushes customers up the value chain toward DSL," Stofega said. "The most important reason they should continue to offer it is because it generates revenue. Besides the monthly subscription fees, Internet call waiting generates more revenue for a telco by allowing a higher percentage of calls to be completed."