U.S. Consumers Open To VoIP Switch: Study

About 71 percent of over 1,400 adults polled around the United States in December would consider switching to Internet telephony, according to a new study performed by Marketing Advocates, Inc. for telecom company Level 3 Communications.

But the same study also cautioned that those willing to consider the switch first want more information before making such a change, Level 3 said of the study, released just in time for the Spring 2004 Voice on the Net (VON) Conference and Expo.

"Our survey results highlight the immense interest that Internet calling is generating among U.S. consumers," said Level 3 vice president of VoIP marketing Cynthia Carpenter, announcing the study results.

"We feel strongly that as education on Internet calling increases, consumer adoption will grow more rapidly. Therefore we are focused on increasing consumer awareness of Internet calling and the benefits it delivers through direct, vendor-neutral education," she continued. "Among other things, consumers need to be aware that all VoIP services are not created equal and that the levels of quality, reliability and safety can vary."

The study also showed young adults, minorities, and recent college graduates were the likely next wave of VoIP adopters, with those aged 18-34, Hispanics, and recent graduates the highest levels of VoIP interest over the market as a whole.

But an equally striking 73 percent of total respondents said they preferred buying VoIP services in a bundle of telecom services, the most desirable such bundle being VoIP and broadband—"a fact which seems to play to the hands of cable companies as they increasingly compete with incumbent telephone operators," Level 3 said.

Cost savings and potential broadband discounts and more features not included in traditional telephony also factored into the thinking of those who preferred the VoIP/broadband bundling, the company added.

"The results show that meaningful savings and high quality service, delivered by a trusted brand, are the key ingredients to mainstream VoIP adoption," Carpenter said. "Interestingly, the survey also indicates that potential buyers view heavily discounted services with skepticism. We believe these findings point to value and consistent service quality, rather than 'rock bottom prices,' as the primary drivers of mass market VoIP adoption."