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Dell-Oro Group Reports Heavy Declines in Softswitch Revenues for Third Quarter 2011

TMCnews Featured Article

November 21, 2011

Dell-Oro Group Reports Heavy Declines in Softswitch Revenues for Third Quarter 2011

By Susan J. Campbell, TMCnet Contributing Editor

Market revenues for the Carrier IP Telephony market have experienced a 10 percent annual decline in the third quarter of 2011, according to the Dell-Oro Group. This proven source for market information surrounding the networking and telecommunications industry highlighted the deep decline in Softswitch, Gateway (News - Alert) and Session Border Controller (SBC) segments.

Quarter-over-quarter growth was reported in the Voice Application Server (VAS) segment, yet this growth was not enough to offset declines in the SBC, Gateway and Softswitch segments. Two areas did demonstrate strength, however, including business-focused VAS services and Voice over Long Term Evolution (VoLTE) infrastructure spending.

"Based on recent interviews with vendors and service providers, we found that 3Q11 was the first quarter of significant revenue recognition for IP Multimedia Subsystem (News - Alert) (IMS) equipment for LTE voice services," said Chris DePuy, Analyst at Dell'Oro Group, in a statement.

"It is exciting to see early signs that VoLTE infrastructure spending is underway. While the services will initially focus on voice, we expect service providers to offer new messaging and entertainment offerings to customers that will compete with Over The Top services such as Skype (News - Alert).  We will be watching for handset availability over the next year to confirm that VoLTE services are rolling out as planned," continued DePuy.

As for leading brands, GENBAND (News - Alert) was able to maintain a strong revenue share lead in the wireline voice core market. Ericsson remained in the number one spot for wireless voice core.

The Carrier IP Telephony Quarterly Report is designed to provide complete and in-depth coverage of the market, including tables on manufacturer revenue, shipments and average selling prices for wireless and wireline voice core markets. Included in the wireline segment is Media Gateways, Voice Application Servers, SBCs and Softswitch offerings.

TMCnet also recently reported that Cisco (News - Alert), in collaboration with US Signal, a provider of regional transport, data center and Internet Protocol (IP) services, announced they the successful completion of the industry’s first 100 Gigabit (100G) coherent dense wavelength division multiplexing (DWDM) trial. This test run leveraged the Cisco ONS 15454 Multiservice Transport Platform (MSTP) system.


Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan’s articles, please visit her columnist page.

Edited by Stefania Viscusi

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