The Future of Landline Usage and the Rise of VoIP Technology
Landline usage has been on the decline as VoIP technology gains traction worldwide. Despite the shift, landline telephony remains relevant in today’s communication landscape. Let’s explore the current state of landline usage and the transition happening globally.
The Current State of Landline Usage
The peak of the public switched telephone network (PSTN) occurred in 2006 with a total of 1.22 billion lines in service. Since then, there has been a consistent annual decline of 6%. In 2024, the total PSTN subscriptions dropped by 16% to 407 million.
Looking towards 2031, forecasts predict a significant decrease to fewer than 250 million lines globally, marking a substantial decline from the peak in 2006.
Transition to VoIP Technology
With mobile substitution impacting fixed voice markets, the rise of voice-over-IP (VoIP) subscriptions has contributed to the decline of PSTN telephony. In 2024, IP-based voice subscriptions surpassed PSTN connections for the first time, reaching around 447 million.
TeleGeography predicts that by the end of 2031, VoIP lines will outnumber PSTN lines by almost 300 million, with a global VoIP household penetration of 21% compared to 10% for PSTN connections.
Countries like France, Japan, Germany, and Portugal are leading the VoIP adoption wave, with penetration rates exceeding 75% at the beginning of 2025 and expected to exceed 90% by 2031.
Global Trends and Outlook
While VoIP is on the rise, total PSTN and VoIP subscriptions declined by 2% in 2024, with a forecasted annual drop of 1.1% up to 2031. Fixed voice penetration is declining globally, except for stable rates in Africa and pockets of growth in specific regions.
Telecom markets in India, Egypt, and Mexico saw growth in PSTN+VoIP bases, while other major economies experienced declines in fixed voice subscriptions in 2024. The transition towards VoIP technology is inevitable, as highlighted by strategic decisions from telecom giants like AT&T and BT to phase out legacy services and embrace all-IP networks.
IP networks offer cost-effective solutions and a wider range of services, signaling a shift towards modernized communication infrastructure in the telecommunications industry.
Data Insights
For comprehensive telecom data and analysis, consider subscribing to TeleGeography’s GlobalComms database to stay informed and ahead in the evolving landscape of telecommunications.
