VoIP in Europe to reach 88 million by 2012. Not Bad.

Aggressive pricing for triple plays is expected to see 88 million VoIP subscribers in Western Europe by 2012 according to research group InfoCom. This represents 240 percent growth over the 25.8 million VoIP subscriptions estimated for June 2007. The Europe VoIP market is about double the size of the U.S. market. The difference is attributed to strong competition by multiple providers, especially in markets where the local loop has been effectively unbundled. BUT they dont offer sophisticated VoIP services as it happens in US. They just replace POTS with VoIP. Thats a big difference!

InfoCom is predicting broadband penetration of 68 percent, which will translate to 121 million homes by 2012. Three quarters of these are expected to be VoIP capable, resulting in VoIP penetration equal to 50 percent or 87.8 million homes.

Strongest growth will come from those countries with immature broadband markets, such as Greece and, to a lesser extent, Spain. InfoCom predicts Netherlands could take over France as the leading VoIP market (by penetration) because of the fierce competition between the cable operators, KDN and the DSL providers.

The number of residential broadband connections (including fibre optic connections of the FTTx family) will reach 121 million in Western Europe, i.e. a growth of 88% over June 2007, and will thus mean a household penetration of 68%. InfoCom estimate 73% of these residential broadband connections will also support a VoIP subscription meaning 87.8 million VoIP subscriptions, i.e. a household penetration of 50%. 87.8 million VoIP subscriptions represent 240% growth over the 25.8 million VoIP subscriptions estimated for June 2007. The results derive from infoCom latest VoIP study on 16 Western European countries.

From a geographical point of view, some countries where VoIP is currently not very developed, e.g. Greece or Spain, will outpace others which are already familiar with the service. Other countries, such as France and the Netherlands will not grow quite as fast. The Netherlands might just take over France as the leading VoIP country, at least in terms of penetration, on the strength of its broadband market and the intense competition between the triple play offers of the cable operators and of KPN or other DSL providers. Germany, thanks to bitstream, naked DSL and finally some increasing competition from cable operators should also go.

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