Hey, we all knew it was coming -- VoIP’s explosive growth, that is. Considering that the major telecommunications carriers in the U.S. have been using VoIP on their long haul networks for nearly two decades now, it only makes sense that eventually it would find its application on the last mile networks of today’s fixed line and mobile broadband service providers. It’s all part of the ongoing evolutionary process in communications technology: Find a better way to do something and eventually everyone will want to use that method. Consumer awareness of VoIP is growing rapidly, as people come to discover the many advantages it holds over traditional phone service (not the least of which is its super low cost – typically either free for local calls or pennies per minute for long distance). When you come right down to it, it is a pretty simple concept: the Internet is becoming the new telephone network. Or perhaps it’s even more simplistic to say that the traditional telephone network is being absorbed by the Internet?

This evolution and subsequent rapid growth is clearly evident in today’s announcement from VoIP service provider VoIP Inc. (News - Alert) The company, a leading provider of turnkey VoIP communications solutions for service providers, resellers and consumers, today announced the largest increase in network traffic since its inception in 2004. As a result of network expansion, new customers signing on, and higher network usage, VoIP Inc. has reported a 40 percent increase in overall minutes per day being carried over its global network during the period from September 15, 2007 to October 15, 2007. Not only does this break all previous records for the company, it also equates to a significant increase in its October revenue compared to September. And the company anticipates gross margins on the minutes carried over its network will only continue to improve.

In terms of network expansion, VoIP Inc., which also serves as a certified Competitive Local Exchange Carrier (CLEC) and Inter Exchange Carrier (IXC), has established direct facilities for the origination and termination of minutes/calls on its own network instead of utilizing third party carriers to handle those minutes. It claims that 44 percent of all minutes that it bills for are carried over its network today, compared to just 17 percent just 30 days ago. Through interconnection, the company charges other providers for use of the network and passes the cost savings onto its customers. These types of network sharing arrangements are generally referred to as “peering.” Basically it means that any network capacity that isn’t being used on a participating partners’ network can be utilized by any other partner. VoIP Inc. claims that its network has now expanded to the point where it can be compared to the massive networks being operated by VoIP peering leaders XO Communications (News - Alert) and Level 3 Communications. (In terms of network coverage, that’s whole lot of real estate!)

“The investments we made in expanding our network have made us a more important partner with our customers,” said Shawn Lewis, chief operating officer of VoIP, Inc., in the press release. "The increased traffic and improved margins, resulting from a more favorable mix of customers, positions the Company for strong growth during the fourth quarter. We believe the progress we have made in attracting new customers and in developing our network will be reflected in our fourth quarter results."

As VoIP Inc. continues to target IXCs, CLECs, ISPs, ITSPs, cable operators and other VoIP service providers around the world, one can be certain that VoIP’s continuing growth is all but guaranteed.

VoIP, Inc, last made news on TMCnet in August, when it reported a 58.7 percent increase in un-audited revenues for the month ended July 31, 2007. This represented an increase of about $852,000 in revenue. The company said the boost was mostly due to 47 percent increase in termination minutes by users of its network.

For more information, visit www.voipincorporated.com.

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Patrick Barnard is Associate Editor for Customer Interaction Solutions magazine and Assignment Editor for TMCnet. To see more of his articles, please visit Patrick Barnard’s columnist page.