Developing nations are the fastest growing destinations for international VoIP traffic, according to the latest data released by TeleGeography. Brazil and Nigeria led the world in growth last year, with 112 percent and 103 percent, respectively. Bangladesh was a close third with 97 percent growth, followed by the Dominican Republic at 81 percent. Globally, VoIP traffic grew by 35 percent in 2004.

Since 2001, Latin America has been the largest destination region for international VoIP traffic, with 36 percent of the world market in 2004. Mexico accounts for almost half of the region's incoming VoIP minutes, with 5.3 billion. The economic impact on Mexican carriers is significant, as VoIP is now used to carry half of all incoming voice calls.

TeleGeography estimates that international VoIP traffic will exceed 42 billion minutes in 2005, representing over 16 percent of the total international voice market.