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16:25 15th January 2010
Voice over Internet Protocol, known as VoIP, offers "a cheaper alternative to traditional wireline services", according to George Van Horn, senior analyst at industry market research company IBISWorld.
"[This] is why subscriber and revenue growth for this industry has been so strong," he added.
He went on to say that users can save money on phone calls abroad because VoIP technology is less costly and makes no distinction between where incoming and outgoing calls are made.
Mr Van Horn also said VoIP has "benefitted from taking business away from landline phone service providers", a trend he expects to continue.
His comments emerge as IBISWorld said VoIP has grown over the last ten years thanks to its offer of low cost calls.
However, according to home phone comparison website Homephonechoices.co.uk, few Brits are taking advantage of the low cost international calls it offers.
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