If i had 100 billion dollars…

Imagine saving over US $100 billion.

According to results of a study recently released by Microeconomic Consulting and Research Associates, American consumers and small businesses across the country could save that much money on their phone bills over the next five years as a result of competition in VoIP service.

Breaking down those figures means that residential cable telephony consumers in the U.S. stand to save an average of US $135 annually, while small business could pocket an extra US $500 per year; this latter figure represents a 70 percent shave from the typical small-business phone bill. MiCRA analysts also figured that 24 million Americans will have purchased phone service from cable companies by 2011.

Some other findings of the study included:

• Residential users of cable telephone services are estimated to grow from 10.0 million in 2007 to 23.7 million by 2011.

• Residential customers of incumbent telephone companies could save US $70 billion over five years “if incumbent telephone companies are forced to respond to the competitive challenge by facilities-based VoIP providers.”

• Small businesses could save over US $2 billion annually on existing bills due to the new competition offered by facilities-based VoIP providers.

Declared Dr. Michael Pelcovits, principal at MiCRA and lead author of the study: "We are on the cusp of the kind of intermodal competition that Congress envisioned over a decade ago. … the American consumer – and the American economy – will see a windfall as a result of this technological revolution."

The study was commissioned by the National Cable and Telecommunications Association (NCTA) and was conducted independently by MiCRA. The entire study is available online at MiCRA.

MiCRA is a Washington, D.C.-based economic consulting firm specializing in applied microeconomic theory, industrial organization, and econometrics. MiCRA provides economic analysis, expert testimony, litigation support, and economic research to law firms, corporations, government agencies, and trade associations.