VoIP Statistics 2026: How VoIP Replaced the Business Phone Line, in FCC Data

The business line crossover

Business VoIP connections grew from 2.1 million to 44.0 million while business switched access lines fell from 62.8 million to 8.6 million. VoIP passed half of business wireline connections in Dec 2018. The total number of business wireline connections also shrank, from 64.9 million to 52.6 million, so VoIP did not only replace lines but absorbed a smaller market.

Hosted VoIP drives the growth

Since 2014, the FCC has separated over-the-top VoIP, which runs over broadband the customer buys from someone else. That is the delivery model of most hosted and cloud phone systems. Business over-the-top subscriptions grew from 2.1 million in June 2014 to 26.4 million in June 2025, and now make up 60% of business VoIP.

Consumers are leaving wireline altogether

Households tell a different story. Consumer VoIP subscriptions peaked at 40.3 million in Dec 2016 and have fallen to 19.4 million. VoIP’s share of consumer wireline connections (75.2%) is lower than in business because the whole consumer wireline category is shrinking as mobile replaces it. Mobile voice subscriptions reached 395 million in June 2025. Interconnected VoIP in total peaked at 68.0 million in June 2022.

Business VoIP share by state, June 2025

VoIP’s share of business and government wireline voice connections in each state. 50 jurisdictions have both figures published; Alaska is excluded because the FCC withheld one of the counts.

• Rhode Island

  91.9%

• Michigan

  89.9%

• Kansas

  89.6%

• Texas

  89.3%

• Florida

  89.2%

• Tennessee

  89.0%

• Missouri

  88.9%

• Illinois

  88.3%

• Utah

  88.3%

• Arizona

  87.5%

• Oklahoma

  87.5%

• Georgia

  87.0%

• Oregon

  86.4%

• North Carolina

  86.4%

• Alabama

  85.6%

• Colorado

  85.5%

• Minnesota

  85.2%

• Wisconsin

  85.0%

• Indiana

  84.8%

• Massachusetts

  84.8%

• Arkansas

  84.3%

• California

  83.9%

• Mississippi

  83.6%

• Washington

  83.6%

• Nevada

  82.8%

• Delaware

  82.5%

• Connecticut

  82.4%

• Ohio

  82.3%

• Louisiana

  82.0%

• Virginia

  82.0%

• Idaho

  80.8%

• New Jersey

  80.4%

• Kentucky

  79.8%

• Pennsylvania

  79.5%

• Nebraska

  78.7%

• New Hampshire

  78.1%

• South Carolina

  77.7%

• Maryland

  77.5%

• New York

  77.2%

• Iowa

  73.9%

• Montana

  72.7%

• District of Columbia

  72.4%

• Vermont

  72.3%

• New Mexico

  70.2%

• South Dakota

  68.1%

• Maine

  66.7%

• North Dakota

  66.7%

• Wyoming

  66.7%

• Hawaii

  63.8%

• West Virginia

  61.1%

What this means for MSPs

The remaining 8.6 million business switched lines are the migration pool. By count, the most remain in California (1.00M), New York (0.79M), Texas (0.45M). For most clients the question is no longer whether to move to VoIP but which hosted platform, and how it is secured and supported.

Frequently asked questions

What percentage of businesses use VoIP?

FCC data count connections, not businesses. In June 2025, interconnected VoIP accounted for 83.6% of the 52.6 million business and government wireline voice connections in the United States; traditional switched access lines made up the rest.

How many VoIP lines are there in the US?

63.4 million interconnected VoIP subscriptions in June 2025, of which 44.0 million were business and government grade. The total peaked at 68.0 million in June 2022.

Are landlines going away?

Switched access lines fell from 141.0 million in Dec 2008 to 15.0 million in June 2025. Consumer VoIP is also shrinking, from a peak of 40.3 million in Dec 2016 to 19.4 million, as households rely on mobile phones. Mobile voice subscriptions reached 395 million.

What is over-the-top VoIP?

VoIP delivered over a broadband connection the customer buys separately, the model used by most hosted and cloud phone systems. Business over-the-top VoIP subscriptions grew from 2.1 million in June 2014 to 26.4 million in June 2025.

Which states use the most business VoIP?

In June 2025, VoIP’s share of business wireline voice connections was highest in Rhode Island (91.9%), Michigan (89.9%), and Kansas (89.6%), and lowest in West Virginia (61.1%).

Methodology

References

1. FCC, Voice Telephone Services Report and data. Accessed October 2026.
2. FCC, Form 477 resources. Accessed October 2026.