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VoIP stands for Voice over Internet Protocol and allows businesses and call centres to place phone calls over the internet rather than an analogue phone line.
In the UK, every business will need to switch over to VoIP by the beginning of 2027, when The Big Switch Off happens. This means all landline phones will be switched off. Therefore, you need to make sure you choose the best VoIP provider for your business before this happens.
VoIP requires a high speed internet connection to make and receive calls. Landline usage has been rapidly in decline since the mid 2000s and the global VoIP market is expected to reach £40bn by 2025. This is just one of a number of interesting facts about VoIP that we are going to explain in this article.
VoIP Usage Statistics
More businesses are seeing the benefits of VoIP and it’s usage is increasing in the UK and globally. Here are the most important usage statistics you need to know.
1) UK fixed voice service revenues totalled £1.30bn in Q3 2023; a decrease of £18.6m (1.4%) from the previous quarter
Fixed service revenues are falling every year. Its decreased 1.4% from the previous quarter and 8.3% year-on-year. This could be due to a number of factors but the biggest factor is likely due to the Big Switch Off at the beginning of 2027.
2) 63% of Startups use VoIP
Startups need fast ways to scale and VoIP is perfect for this. According to FounderJar, not only do 63% of founders use VoIP, another 24% are planning to implement it soon.
3) 90% of IT Leaders will cease using on-premise communication tools
FinancesOnline found that 90% of IT leaders will ditch on-premise communication tools in favour of VoIP technology.
4) As of 2022, the top three most used VoIP services in the UK are WhatsApp, Facebook Messenger and Facetime
Among the general population of the UK, WhatsApp, Facebook Messenger and Facetime were the most popular VoIP services, with a market share of 75%, 39%, and 44 % respectively. This is according to research by market research firm Statista.
5) By 2025, AI will power 95% of all customer interactions
AI is playing a larger roll in how we talk to customers. Its predicted by that by 2025, 90% of all interactions will be powered by AI and by 2026 conversational AI will lower labour costs by $80 billion. VoIP systems in your business will be integrated with conversational AI platforms going forward.
VoIP Cost and Benefits Statistics
VoIP saves UK businesses money and has many benefits over a traditional landline. Here are the important VoIP cost and benefits statistics you need to know.
6) With VoIP, a businesses average savings are between 30% and 50%
Because VoIP just needs a device with an internet connection, it saves a business on the typical hardware costs associated with traditional landline phones. VoIP subscriptions are also cheaper so its no surprise a business will save more with VoIP.
7) VoIP saves businesses over 15% on their IT staffing costs
According to research by TeleTech that looks at the difference in cost between cloud based and premise based contact centres, VoIP saves businesses over 15% on their IT staffing costs.
8) Mobile workers using VoIP report a 67% increase in productivity
Headphones Addict found that mobile workers using VoIP have reported a 67% increase in productivity, saving time and allowing them to perform at their best.
9) 83% of companies lost a customer, missed a major deadline or terminated an employee due to a communication issue
This statistic shows how important communication and how often this issue happens. Its vital you choose the right VoIP provider to suit your business needs to stop these events occurring.
10) Unified communications saves employees an average of 30 minutes per day
By using VoIP, businesses can unify their communications under one single platform. According to Network World, unified communications allow a business to streamline their communications and save an average of 30 mins per day.
VoIP Market Statistics
VoIP’s market share has increased across the world as more and more businesses are implementing it. Here are most important VoIP market statistics.
11) The UK VoIP Market is expected to grow by £3.78 billion by 2026
A 2021 report on VoIP in the UK has predicted that the UK market will grow by £3.78 billion by 2026. This report identifies the high adoption of BYOD policy over the next few years as a driver of growth. BYOD stands for bring your own device and its now more common for employees to use their personal mobile phone for some aspects of communication in work.
12) 85% of organisations will embrace a cloud-first principle by 2025
More and more businesses and organisations are moving to the cloud, with Gartner reporting that 85% of organisations will embrace a cloud first principle by 2025. VoIP plays a big role in a cloud based system and makes communications more streamlined.
13) The UK VoIP market is 100% regulated by Ofcom
Ofcom is the UK governing body for communications and ensures their is compliance across all businesses using VoIP. Ofcom protects businesses and consumers from bad actors and poor quality of service.
14) 45% of businesses are unaware of the Big Switch
A 2023 survey by National Business Communications found that 45% of UK businesses are unaware of the Big Switch, where landlines will be turned off. It also found that 62.1% are still using landlines. If your business is still using a landline, now is the time to set up VoIP.
15) Europe has 18.1% of of the global VoIP market
VoIP usage is growing in the UK and Europe, with current global market share standing at 18.1%. It falls behind market share for the US, which stands at 27.6%, according to Persistence Market Research.
The Future of VoIP
Its an exciting time for VoIP. Since COVID-19, businesses have gone from a fully remote culture to striking a balance with hybrid working. This gives employees and teams the best of both worlds and allows a flexible anytime, anywhere way of working. To facilitate this, businesses are now moving towards the cloud and using VoIP. Here are some things to look out for about the future of VoIP.
- 5G standalone will expand in 2024 and 2025. 5G standalone will be be rolled out to more places around the world, allowing for faster and better quality VoIP services.
- AI will be game changer. VoIP and AI will go hand in hand, especially in the call centre space. Call centres are already implementing AI auto-attendants to improve customer service and save on labour costs.
- Unified communications will increase. Businesses are moving towards unified communication platforms where CRM, VoIP and other cloud based platforms are all integrated under the one system, streamlining and improving communication.
VoIP in the US vs UK
VoIP in the US is more advanced, with a larger market share at present. In the UK, however, landlines are scheduled to be shut off in 2027, pushed back from 2025. This will see a massive surge in VoIP usage in the UK, which will see it catch up to the US.
Landlines are not scheduled to be turned off in the US just yet. In rural areas especially, landlines provide a vital communication channel where cell coverage is minimal. VoIP usage in the US is more concentrated on larger urban areas and its here that its possible that VoIP will be the only form of telephone communication.
As we’ve seen from these statistics, VoIP has become more integral to how UK businesses are run. The move towards cloud based communication along with the rise of the hybrid workplace has accelerated this. 45% of UK businesses though are still unaware the Big Switch is happening in 2027. If you are in that category or haven’t switched yet, now is the time.
