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Carrier VoIP Investment Drops, Except for SIP Trunking

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June 23, 2009

Carrier VoIP Investment Drops, Except for SIP Trunking

By Gary Kim, Contributing Editor

Sales of carrier IP telephony infrastructure contracted more than 25 percent in the first quarter of 2009 compared to the same quarter in 2008, due to a combination of seasonal weakness, reductions in capital spending prompted by the global economic recession, and the continued decline of fixed voice revenues and subscribers as consumers increasingly choose wireless as their sole means for voice communications, say researchers at Dell’Oro Group.

“Although the overall carrier IP telephony market has been experiencing hard times, there are some bright spots that have been less affected by the weak economy,” says Greg Collins, Vice President at Dell’ (News - Alert)Oro Group. “Business voice-over-IP services, particularly SIP trunking, provide an example,” he says.
Another example is the enterprise session border controller market that is seeing increased consolidation and investment as SIP trunking, combined with the need for businesses to integrate IP-PBX (News - Alert) systems from disparate vendors, creates an expanding market opportunity,” he adds.
While nearly all vendors suffered revenue declines during the quarter, most vendors with a relatively high degree of exposure to markets outside of North America fared better than those with a high reliance on the market.
Alcatel-Lucent (News - Alert), Huawei, and Nokia Siemens managed to gain share while Cisco, Nortel and Sonus were among the vendors whose share contracted on a quarter-over-quarter basis during the first three months of the year, Dell’Oro Group says.

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Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Michael Dinan

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