Residential VOIP is Dead
Canada’s cable companies today filed comments with the CRTC in which they release the results of a study the conducted into the residential VOIP market in Canada. In short, it found that residential VOIP “failed to catch on” and that “market research reveals a market in decline, rather than one in the throes of expanding”.
The filing also lays a beating on the other parties involved in the proceeding. With regard to the CRTC, it says “this proceeding has become a textbook case of how not to make a well informed regulatory decision”. It lays blame for the fiasco at the feet of the PSAPs and ILECs saying “The [ILECs] have kept the CRTC, and interested parties, completely in the dark” and that the PSAPs were “Similarly [...] unhelpful in this regard”.
When I was the president of the (now disbanded) Canadian Association of VOIP Providers, this is exactly what we were saying. My only regret is that it took the cable companies this long to finally wake up.
Aside from the above, the submission goes on to provide some very interesting statistics which seem to indicate that residential VOIP is in steep decline. Citing a study done in the U.S., only 0.0064% are from Nomadic VoIP customers and the number has been steadily dropping since 2007. Many of the major providers of VOIP have shuttered their VOIP service in Canada (including Vonage). Canada has only 90,000 VOIP customers who use the service as their primary phone service (the rest use it just for long distance or to suppliment wireline or wireless service).
While residential VOIP is certainly dead, VOIP on mobile devices is poised to explode and 911 calls on mobile devices can be made to work through the traditionall cellular system. Assuming Canada ever gets a location system for cell phones, this should make for a safe and effective emergency system.
Update: For the curious, I have uploaded the entire document here.