IP carrier market shrinks

IP telephony carrier market revenues decreased 10 percent in the past quarter to $861 million, according to a report released Thursday by Dell'Oro Group.

Greg Collins, president of Dell'Oro, said carriers eased investment in infrastructure due to the general U.S. market slowdown, instead preferring to earmark investment dollars that will produce revenue. Collins insinuated that constricting market conditions for carriers-caused by loss of fixed-line income and heated competition with wireless companies-led them to want to see more immediate and certain results.

Infrastructure investment may take time to show ROI, whereas other projects that carriers are diverting funds toward may generate revenue more quickly.

In the sagging market, Nortel and Huwaei managed to grow their respective stakes. Huwaei continues to see excellent growth in Asia and EMEA, due to large-scale fixed-line installations. Nortel capitalized on strong sales to rural area in North America to fuel growth. 

For more:
- see the Dell'Oro report [1] on the sector 

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