Market Trend

European VoIP Market to Grow Through 2012

Given their rapid growth in the past three years, European VoIP providers have emerged as a powerful force in the European fixed-line market.

VoIP subscribers accounted for 20% of aggregate (switched and VoIP) residential fixed-line subscribers and 8% of revenues from residential fixed lines in 2007. Telegeography projects that VoIP subscribers in western Europe will grow from 25.3 million at the end of 2007 to 37.6 million by the end of 2008, and will reach 58 million by 2012. This growth would drive VoIP penetration from 16% of households at year end 2007 to 37% of households by year end 2012, according to Telegeography.

Since VoIP service providers charge far less for their service than traditional operators, they generate less revenue than their switched counterparts. Western European VoIP service providers generated approximately €2.9 billion in 2007, a sum that is projected to increase to €5.9 billion in 2012. Compared to revenues from traditional, fixed-line phone services, VoIP revenues are quite small, according to Telegeography.