Business VoIP

Dell’ (News - Alert)Oro Group, a company that offers market information about the networking and telecommunications industries, has published a report claiming the IP Telephony Carrier market has contracted 10 percent to $861 million.

 

 

The Dell'Oro Group’s data analysis offers comprehensive direction of market movement. The IP Telephony Carrier Quarterly Report provides coverage of the market covering manufacturers' revenue, average selling prices, license/channel shipments for softswitches, media gateways, session border controllers and voice application servers.

 

"Through the first half of 2008, service providers have had trouble justifying the investment in infrastructure upgrades, because revenues from their fixed-line business continue to decline as prices erode and subscribers switch over to cable and, to an ever greater extent, wireless services," said Greg Collins, vice president at Dell'Oro Group.

 

"Service providers are showing that they would rather direct investment dollars toward revenue generating projects than toward equipment that might make existing services more profitable. This trend is especially visible in North America where a weak economy is putting more pressure on revenue growth for the large network operators with national reach," added Collins.

 

The report also mentions about the voice application server market which grew nearly 30 percent compared to the year-ago quarter as these products often are used for new, revenue-generating services and seem to have been less affected by the weak quarter.

 

Dell'Oro has also reported that Nortel (News - Alert) and Huawei have managed to gain market share sequentially.