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Advanced IP Carrier Report: VoIP Equipment Market Set to Grow

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December 14, 2009

Advanced IP Carrier Report: VoIP Equipment Market Set to Grow

By Marisa Torrieri, TMCnet Editor


IMS equipment is experiencing strong and healthy growth, reflecting a healthy adoption of VoIP services worldwide, according to Campbell, Calif., market research firm Infonetics Research’s third-quarter (Q309) “Service Provider VoIP Equipment” and “Subscribers and IMS Equipment and Subscribers” market share and forecast reports.

 
Additionally, there is a continued migration by service providers from VoIP services to IMS networks, according to reports.
 
“The service provider next gen voice equipment market continues to hold steady, with worldwide revenue in the third quarter roughly matching that of the second quarter,” said Diane Myers, directing analyst for service provider VoIP and IMS at Infonetics Research (News - Alert). “This stability is a very good sign for the industry, which has seen a tumultuous year. We are still expecting about a 30 percent drop in worldwide revenue for the overall 2009 year compared to 2008.”

Calling the data evidence of “a very solid quarter for IMS equipment,” Meyers said Infonetics expects the worldwide IMS equipment market to more than double in 2009, and to grow to $1.6 billion by 2013.
 
According to Infonetics Research, key operators in Asia Pacific -- such as NTT DoCoMo (News - Alert), Softbank, SK Telecom and KT -- continue to push on enhanced mobile services over their IMS networks, including mobile IM, video sharing, and PoC (push to talk over cellular).
 
In spite of an economic downturn, worldwide service provider voice over IP equipment revenue totaled $595 million in Q3 2009, a slight decline from the previous quarter. Infonetics also noted the global economic downturn is accelerating service provider migration to native IP, leaving behind TDM-related equipment and taking a toll on traditional trunk media gateways and softswitches.
 
The growing interest in IP equipment is positive news for companies like Tandem Transit, a provider of advanced IP carrier interconnections for ILECs, CLECs, and cable carriers who rely on infrastructure to handle tandem transit services in a stable, reliable, efficient, cost-effective and flexible manner.
 
With Tandem Transit’s (News - Alert) “National Transit Service,” telecommunications carriers can take advantage of more efficient call routing to competitive carriers while reducing transit expenses to the RBOC.
 
“When we introduce calls through an IP alternative, we immediately reduce dependency on the TDM networks of the RBOCs,” Agostino Guglietta, VP of business development for Tandem Transit, recently told TMCnet. “By doing this, and introducing these IP alternatives, carriers not only reduce their dependency on the RBOC but their cost of local transit among other local exchange carriers.”

Marisa Torrieri is a TMCnet Web editor, covering IP hardware and mobility, including IP phones, smartphones, fixed-mobile convergence and satellite technology. She also compiles and regularly contributes to TMCnet's gadgets and satellite e-Newsletters. To read more of Marisa's articles, please visit her columnist page.

Edited by Marisa Torrieri







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