International Phone Traffic Growth Slows, while Skype Accelerates

19 Jan 2010

New data from TeleGeography show that the growth of international telephone traffic has slowed, while Skype’s growth has accelerated. Over the past 25 years, international call volume from telephones has grown at a compounded annual rate of 15 percent. In the past two years, however, international telephone traffic annual growth has slowed to only 8 percent, growing from 376 billion minutes in 2008 to an estimated 406 billion minutes in 2009.

The deep recession has had a marked impact on many routes. “Demand for international voice has been remarkably robust, but it’s clearly not recession-proof,” said TeleGeography analyst Stephan Beckert. Traffic to Mexico, the world’s largest calling destination, declined 4 percent in 2008, and aggregate traffic to Central America declined 5 percent.

While international telephone traffic growth has slowed, Skype’s traffic has soared. Skype’s on-net international traffic (between two Skype users) grew 51 percent in 2008, and is projected to grow 63 percent in 2009, to 54 billion minutes. “The volume of traffic routed via Skype is tremendous,” said Beckert. “Skype is now the largest provider of cross border communications in the world, by far.” The proliferation of alternatives to telephone calls—including Skype for mobile devices, and Google’s gradual entry into the voice market—will present ever greater challenges to international carriers.

TeleGeography has been a vital source of statistics and analysis for the international long distance market for nearly 20 years. To find out more and to download a copy of the executive summary, please visit http://www.telegeography.com/products/tg/index.php.

For further information, please contact:

Stephan Beckert

sbeckert@telegeography.com

+1 202 741 0042

TeleGeography
http://www.telegeography.com/products/tg/index.php