VoIP services in Europe are growing at a blistering pace and reshaping the fixed-line market, according to a report from TeleGeography.

Consumer IP telephony subscribers reached 25.3 million at year-end 2007, up from 15 million in 2006, and only 6.5 million in 2005.

As a result, revenues were projected to top USD $5.7 billion in 2008, up from USD $4.2 billion in 2007.

Prices for triple play service in the US are approximately 70 per cent higher than in Europe, which accounts for VoIP adoption in Europe growing far faster than in the US.

While customers continue to flock to VoIP services, market penetration in the 13 countries surveyed varies greatly.

France leads the way in adoption of VoIP, as TeleGeography estimates that 42 per cent of the population has a VoIP line, while Spain’s VoIP uptake is only 2 per cent.

All adoption statistics are based on fixed-line replacement VoIP installation, excluding VoIP soft clients like Skype.

Skype has more subscribers in Europe than any individual provider of handset-based VoIP services, but the revenues and traffic volumes generated by Skype’s subscribers are lower and have a much smaller impact on incumbent’s revenues.

Expect continued strong growth in VoIP revenue in Europe, as there are several large markets with low penetration currently, including Austria and Spain.

TeleGeography’s European VoIP & Triple-Play Research Service is the authoritative source of data on consumer VoIP services and service providers in western Europe.

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