Worldwide IP telephony carrier market quarterly revenues have exceed $1 billion for the first time in the third quarter of this year, according to market research by California based Dell'Oro Group.
The strong market results was driven by robust softswitch sales as carriers continue to convert their networks to IP. "The increase in softswitch sales this quarter was particularly encouraging due to the strong growth of POTS and T1/E1 subscriber license shipments, which more than doubled year-over-year," said Greg Collins, Vice President at Dell'Oro Group.
While $1 billion in quarterly IP carrier sales is a record, it suggests telcos are still reluctantly moving away from their POTs technologies. "The surge in these license shipments indicates that service providers are accelerating their slow transition away from circuit switches to IP-based solutions as they convert their legacy POTS lines to softswitches" Collins said.
The Dell'Oro report found Nortel and Nokia Siemens Networks each accounted for almost 50 percent of the increase in softswitch revenue for the quarter.
According to Dell'Oro all IP Telephony carrier market segments contributed to the third quarter's record revenue. "The emerging session border controller (SBC) and voice application server markets each grew in double-digits compared to the prior quarter, while media gateways, the largest market segment, showed modest sequential growth."
More Reports:
- Dell'Oro press release [1]
Related articles:
- One trillion VOIP minutes Report [2]Â
- Opportunity vs. risk: Fixed-Mobile Convergence Report [3]
Links:
[1] http://www.fiercewireless.com/press-releases/ip-telephony-carrier-market-breaks-1-billion-quarter-mark
[2] http://www.fierceenterprisecommunications.com/story/1-trillion-minutes-of-voip-in-2006/2007-03-02
[3] http://www.fiercecio.com/story/opportunity-vs.-risk-fixed-mobile-convergence/2007-04-02