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VoIP Equipment Market On the Rise

By Charlene O'Hanlon
November 23, 2010 - News

Demand has risen and prices have dropped on VoIP and related infrastructure hardware worldwide as large network transformations are driving the need for more IP-enabling products and services, according to two recent reports by Infonetics Research.

“In the third quarter of 2010, every product category except media servers was impacted by pricing pressures, so while shipments were up for most segments, total worldwide revenue took a hit," said Diane Myers, directing analyst for VoIP and IMS at Infonetics Research. “Looking at the long-term prospects, the network elements that are best poised for solid growth are those that facilitate the migration to all-IP networks, such as session border controllers."

According to Infonetics’ third-quarter “Service Provider VoIP Equipment and Subscribers," the total service provider VoIP equipment market – including trunk media gateways, SBCs, media servers, softswitches and voice application servers – decreased 9 percent from the second quarter to $511 million. But while revenue is down for the quarter, shipments for almost all segments in the market are up sequentially.

Worldwide, Asia Pacific is the only region expected to post year-over-year revenue growth for service provider VoIP equipment in 2010, the report noted.

The IP multimedia subsystem space, meanwhile, is seeing an increase in revenue as a result of the demand for VoIP equipment, according to Infonetics’ third-quarter “IMS Equipment and Subscribers" report. The worldwide IMS equipment market, including IMS core equipment and application servers, grew 4 percent in the third quarter, on the heels of a 34 percent jump in the previous quarter.

Longer-term, the IMS market will get a boost from the push for enhanced mobile services, according to the report.

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