Home  › Media › Video

Global VoIP Market Takes Hold

  |  August 24, 2006   |  Comments

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)
RegionNumber of VoIP users ('000s) Q4 2005Q4 2004
Asia Pacicific88627071
North and South American45831389
PC to phone1869910324
Skype etc*47304050
Source: Point-Topic, 2006

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!


Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!



Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.



    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...