Fixed-Line Phone Use Declines Further in Iceland as Fiber Internet Surges

The use of traditional landline phones, often referred to as "heimasími" in Iceland, is experiencing a continued downward trend. A new report from the Icelandic Post and Telecom Administration reveals a year-on-year decrease in both subscribers and call minutes for fixed-line services. This decline extends to VoIP subscriptions, which saw an 8.2% drop in users and a 10.3% reduction in call minutes.

In contrast, the mobile phone market shows stability in terms of subscriber numbers. While contract-based subscriptions have increased, prepaid subscriptions have declined. The total number of minutes used from mobile phones saw a slight decrease of 0.8%, falling from 1,079 million minutes to 1,071 million minutes compared to the previous year.

Despite the dip in mobile call minutes, data usage on mobile networks continues to grow, albeit at a slower pace of 7.6% year-on-year. The report also highlights a significant shift in internet connectivity. The number of internet connections is increasing, with a notable rise in fiber optic connections replacing older xDSL technology. By the end of 2025, fiber optic connections accounted for approximately 96% of all internet connections, totaling around 147,000, while xDSL connections dwindled to just under 6,000.

Overall data traffic on fixed networks increased by 2.8% between years. Download traffic constitutes the vast majority at 88%, with upload traffic making up the remaining 12%. The Post and Telecom Administration collects data twice annually from registered telecommunications companies in Iceland to track these market trends.

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The number of internet connections is increasing, with an increase in fiber optic connections alongside a decrease in xDSL connections.