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Voice over IP Having an Effect on Fixed Line Market in Europe

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July 31, 2009

Voice over IP Having an Effect on Fixed Line Market in Europe

By Stefania Viscusi, Assignment Desk Editor

Voice over IP, also know, as “VoIP,” has become an increasingly important technology for businesses and consumers seeking a flexible, scalable and cost-effecitve way to communicate.
A recent report highlighting the latest findings from TeleGeography (News - Alert) notes that VoIP is also now also having an effect on the fixed-line market in Europe.

According to the report, a number of incumbent phone companies in Europe are introducing discounted VoIP services to offer a cost appeal over traditional voice services and are aggressively marketing VoIP to take hold of the market.
In addition, they are selling discounted dual- and triple- play services that include Voice over IP as a way to increase the market.
At the end of 2008, the report noted, there were 34.6 million consumer VoIP lines in service in Western Europe. This is an increase over the 25.9 million which were in service by the end of 2007 and a much greater leap from 2005 with about six million consumer IP telephony customers.
Also, the report noted that VoIP now accounts for more than 24 percent of fixed-line telephone subscribers in Europe and about 10 percent of voice revenue.
Taking a closer look at the specific countries in Europe and how they contribute to the pace of growth, market penetration was at 50 percent in France or households with 190 percent in Portugal and less than 3 percent in Spain.
For more, check out the Voice over IP channel on TMCnet.

Stefania Viscusi is an assignment editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Stefania’s articles, please visit her columnist page.

Edited by Michael Dinan

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