Telecom and data network research firm Infonetics predicts that the North America VoIP market will grow from the US$1.24B that it was in 2004 to over $23B in 2009 – an increase of 18 times in just over five years – quite an aggressive prediction.

“VoIP subscriber growth is skyrocketing right along with revenue growth: we’re forecasting triple-digit growth from 2005 to 2006, with 6 million new subscribers a year every year from 2006 to 2008, when there will be over 24 million,” said Kevin Mitchell, principal analyst of Infonetics Research and author of the report.

While Vonage has the largest market share right now, Infonetics says that stiff competition from cable companies Time Warner and Cablevision are making major gains, eroding Vonage’s market share.

The big three of VoIP are Vonage (32% of the market), Time Warner (25%) and Cablevision (19%).  No other VoIP service provider has more than a 3% market share.