VoIP service industry to grow in Africa and the Middle East

The VoIP service industry in Africa and the Middle East is predicted to expand at a rapid rate over the next five years, according to new research.

A new report by Pyramid Research has revealed that the VoIP solutions sector will be worth around $2.77 billion (£1.7 billion) in 2015, compared to $1.1 billion in 2010.

One factor driving the growth of the market is the rising number of technology licenses which can be issued to different companies, breaking a monopoly which previously restricted the growth of VoIP in the region.

Hussam Barhoush, senior analyst at Pyramid Research, said: "The process of liberalisation in several markets has allowed new entrants to launch VoIP services using new technologies, such as WiMax."

Furthermore, broadband take-up is predicted to rise exponentially, with market revenue set to reach $20 billion in 2015, over double its present value.

"This growth of VoIP subscriptions, coupled with the high demand for cheaper international calling rates as well as regulators issuing more lenient rules toward VoIP as a service, will accelerate VoIP revenue prospects," Mr Barhoush added.