Global VoIP Market Takes Hold

The voice over IP (VoIP) market grew 83 percent worldwide in 2005, with pure-play, cable and telecoms all competing for market share.

VoIP rose from 10.3 million to 18.7 million subscribers worldwide through the course of 2005. This 83 percent growth is detailed a report from Point Topic.

Combined, the number of people paying for PC-to-phone calls (4.7 million) and retail VoIP (telephone-to-telephone) was close to 24 million in 2005. The previous year, the contingent was 14.4 million users. Japan, France, and the U.S. are the dominant VoIP markets, though Germany, the Netherlands, Norway and other European countries reported strong growth early this year.

The U.S. market grew from 1.4 million subscribers at the end of 2004 to 4.6 million in Q4 2005, more than doubling in size. Pure-play provider Vonage continues to be the largest VoIP service carrier, though cable companies represent a collective threat. Time Warner alone added 900,000 customers in 2005. Domestically, VoIP providers tend to offer their products under the label “digital telephone” rather than VoIP.

In Europe, France is the dominant VoIP market player. The country reached 2.8 million paying VoIP subscribers, excluding Skype users. France Télécom increased its subscriber base from 144,000 to 830,000 in 2005.

The Asian market shows the slowest growth, mainly due to saturation in Japan and regulation barriers in China. China is in a trial phase due to government restrictions. Research indicates PC-to-PC and PC-to-phone activity already present in China, despite government authorization.

Point Topic compiles data from ISPs, telecoms and other providers of VoIP services for the report.

Worldwide VOIP Subscribers by Region and Type, Q4 2004 and 2005 (000)
Region Number of VoIP users (‘000s) Q4 2005 Q4 2004
Asia Pacicific 8862 7071
North and South American 4583 1389
Europe 5254 1864
Retail
PC to phone 18699 10324
Skype etc* 4730 4050
Total 23429 14374
Source: Point-Topic, 2006

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource