VoIP Service Uptake Varies Widely in Europe, but Impact is Great

March 05, 2009

New data from TeleGeography show that voice-over-IP (VoIP) telephone services are reshaping the fixed-line market in Europe. By mid-year 2008, just under 30 million consumer VoIP lines were in service in Western Europe, up from 20 million only a year earlier. TeleGeography estimates that the number of VoIP lines in Europe topped 35 million at year-end 2008.

While the aggregate pace of growth across Europe remains rapid, fixed-line market trends in each country are surprisingly unique. Household penetration of VoIP telephony at mid-year 2008 ranged from slightly less than 50% in France to less than 3% in Spain, and annual subscriber growth rates ranged from 544% in Portugal to a comparatively anemic 13% in Norway.

VoIP Penetration of Households, Q2 2007 & Q2 2008

"Europe may have a single market, but it’s far from common," said TeleGeography analyst Patrick Christian. "However, while the uptake of IP telephony services varies widely, VoIP has been a powerful spur to innovation, even in some countries with relatively modest numbers of VoIP subscribers." The challenge presented by IP-based competitors has compelled incumbents to slash the price of traditional telephone services, to deploy higher-speed broadband networks, and to introduce new video-over-IP services.

TeleGeography projects that the number of VoIP subscribers will continue to grow strongly, increasing from 35 million at year-end 2008 to 45 million by the end of 2009.

The European VoIP & Triple Play Research Service has been discontinued. For a full list of TeleGeography’s research services, please visit http://www.telegeography.com/research-services/.