According to the Service Provider Next Gen Voice Equipment report by Infonetics Research, the third quarter of 2005 showed significant growth in all segments of the next gen voice market except session border controllers and media gateways. All segments other than session border controllers are up from one year ago. The worldwide next gen voice product revenue for the third quarter of 2005 was $631.5 million, a 41 percent increase over the third quarter of 2004.
The worldwide next gen voice product revenue total for 2004 was $1.73 billion, an increase of 37 percent over 2003. The same market revenue is forecasted to increase to $5.6 billion in 2008.
Jeff Heynen, an Infonetics Research analyst, speculates that the recent jump in purchasing indicates that providers are moving their next gen voice services closer to residential and business subscribers, demanding additional softswitch intelligence to interact directly with individual subscriber call flows. As softswitches are the core intelligence and service engine for next gen voice, it is expected that all service providers will adopt them in order to offer voice services.
Other third quarter highlights that are featured in the report include:
· Worldwide softswitch revenue increases 14 percent from second quarter and 86 percent from third quarter of 2004.
· Worldwide Class 5 softswitch revenue increases 12 percent from second quarter and 172 percent from third quarter of 2004.
· Worldwide Class 5 packet switch revenue increases 34 percent from second quarter and 108 percent from third quarter of 2004.
· Siemens, Nortel and Huawei dominate worldwide softswitch and Class 5 softswitch revenue market share.
· North American residential/SOHO VoIP subscribers forecasted to reach 24.3 million in 2008; European subscribers expected to reach 27.8 million.
The Next Gen report from Infonetics tracks VoIP subscribers, media servers, session border controllers, trunk media gateways, voice application servers, softswitches and Class 5 packet switches. The companies that are tracked include Acme Packet, Alcatel, AudioCodes, BayPackets, Broadsoft, DiTech, Ericsson, Huawei, Lucent, Nortel, Siemens, UTStarcom, Veraz, and Xener among other companies.
Infonetics is an international market research and consulting firm which specializes in data networking and telecom. The reports published by the company are intended to provide a complete view of the market through constant interaction with equipment manufacturers, service providers, end-users, chip and component manufacturers, sales channels and the financial community.
Softswitch providers are in a prime position for profitability with the staggering growth the market has shown the previous year and is expected to show in the next few years. As all service providers move to adopt the intelligence for next gen voice offerings, the revenues are virtually guaranteed for top companies like Nortel and Siemens. These companies must be continually leading the industry in additional research as well to embrace the next wave once the majority of migration from traditional services is complete.
Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.