WebRTC Solutions Industry News

[January 31, 2006]

Sandvine Study Shows Broadband Provider-Branded VoIP Takes Lead in Europe and North America

WATERLOO, Ontario --(Business Wire)-- Jan. 31, 2006 --

VoIP Drives Carrier Triple-Play Success

Sandvine Incorporated, world leader in intelligent broadband network management solutions today released new VoIP figures based on data aggregated from its North American and European broadband service provider deployments.

Broadband service provider-branded VoIP rollouts were extremely successful in 2005 and have taken the lead in terms of share of VoIP minutes.

For this study conducted in November and December 2005, aggregate data was collected and analyzed from Sandvine's North American and European broadband customer networks where Sandvine is deployed. The data highlighted the VoIP traffic trends of more than 700,000 broadband households from a group of service providers with over 6 million subscribers.

The study indicated that North American service provider-branded VoIP represents 53% of all VoIP minutes on broadband networks. Vonage, with 21.7% share of North American minutes and Skype, with a 14.4% share were the leading third-party providers. All other third-party VoIP providers captured the remaining 10.9% share of minutes.

"Broadband provider-branded VoIP is, and will continue to be a key factor in driving revenue growth and triple-play success for service providers," said Boyd Peterson, Senior Vice President, Media Research, Yankee Group.

In Europe, service provider-branded VoIP represents 51.2% of all VoIP minutes, while Skype follows closely behind with 45% of all VoIP minutes. Vonage takes less than 1% share while other third-party VoIP providers represent 3.5% of all minutes.

In North America, broadband providers that have rolled out network-wide VoIP deployments are now capturing an average of 81.8% of the VoIP minutes on their own networks. In contrast, the market share in minutes for third-party VoIP providers like Vonage and Skype is 12.9% in such competitive environments.

"Consumers are clearly embracing the VoIP products offered by broadband service providers in Europe and North America," said Tom Donnelly, executive VP, marketing and sales for Sandvine. "Sandvine customers have been able to leverage their increased understanding of Internet application traffic trends to effectively differentiate valued services like VoIP and enhance the overall quality of experience for their subscribers."

ABOUT SANDVINE INCORPORATED

Sandvine's award-winning intelligent broadband network equipment helps broadband service providers characterize what really happens on their networks, enabling policies that improve customer satisfaction, reduce operational costs and increase profitability. Sandvine's application and subscriber-aware solutions empower service providers to take control of competing traffic, stop the proliferation of destructive worm, DoS and spam Trojan traffic and ensure subscriber quality of experience (QoE). With over 70 deployments globally, Sandvine is protecting the Internet experience for millions of broadband subscribers worldwide. www.sandvine.com

Copyright (C) Sandvine Incorporated ("Sandvine") 2006

The information contained in this report has been compiled by Sandvine from sources believed to be reliable but no representation or warranty is made by Sandvine or any of its authorized personnel or representatives as to its accuracy, completeness or correctness. All estimates, opinions or recommendations contained in this report are based on analysis of information available to Sandvine as of the date of this report and are subject to change without further notice. The information provided in this report is provided in good faith and Sandvine assumes no legal responsibility or liability for errors, omissions or inadequacies. Each reader assumes sole responsibility for any decisions or actions taken, or not taken, as a result of the information in this report.

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