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Twin Reports: Equipment Growth � IMS Bright, VoIP Dull

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June 10, 2009

Twin Reports: Equipment Growth � IMS Bright, VoIP Dull

By Vivek Naik, TMCnet Contributor

Infonetics Research has released two market research analyses for the first quarter of 2009 – titled, “Service Provider VoIP Equipment and Subscribers” and “IMS Equipment and Subscribers” – and its main findings are that equipment sales for Voice over Internet Protocol were dull and overall negative, and equipment sales for IP Multimedia Subsystems were bright and overall stable.

“The service provider VoIP equipment market had a rough first quarter across all product segments and regions, declining 29 percent sequentially in worldwide revenue,” said Diane Myers, Directing Analyst, Service Provider VoIP and IMS, Infonetics Research (News - Alert). “The market pause for VoIP equipment is being exacerbated by the global economic downturn as service providers put VoIP equipment purchases on hold.”
Company officials claim that IMS equipment, which includes Call Session Control Function servers, Home Subscriber Servers and voice application servers have registered good growth in Europe, Middle East, Africa, and excellent growth in the Asia Pacific region.
Importantly, the IMS Equipment and Subscribers research report has forecast that IMS equipment sales will record an exponential growth with sales improving by nearly 75 percent in 2009 as compared with 2008 and should register close to $ 111 million in revenues.
“We are beginning to see a noticeable shift in spending from stand-alone VoIP networks to IMS deployments,” said Myers. “While the core IMS equipment segments, CSCF and HSS, are still small compared to the service provider VoIP market, deployments remain strong in EMEA and Asia Pacific. The core IMS equipment market had an impressive quarter with $ 63.7 million in revenue.”
The Infonetics Service Provider VoIP Equipment and Subscribers report claims that the significant reasons for VoIP equipment sales getting affected are: major related projects are nearing end of scheduled deployment; because the economy is so bad; Incumbent Local Exchange Carrier and Public Telephone and Telegraph companies have put all pipeline projects on the backburner because access line deployments have waned and fixed to wireless substitutions are taking place.
The VoIP report says that revenues in 2008 were nearly $ 775 million, whereas in 2009 these fell by 29 percent to record slightly above $ 600 million, and the most significant fall was in Q109 over Q108, which registered a 33 percent crash.
There were pockets of good growth, says the report, with vendors such as GENBAND, Veraz Networks, Acme Packet, and Radisys recording positive revenue improvements YoY, and the media server segment improved by 19 percent YoY.
An important possible factor for the decline of equipment sales could be, reported TMCnet earlier, because the used network equipment revenue was nearly $2.5 billion in 2008, which translates to six and a half percent of networking Original Equipment Manufacturer market share, and companies ranging from small to very large are ferreting for cheaper hardware and easier maintenance deals, and most used equipment dealers are confident of increased business in 2009.
The Infonetics IMS Equipment and Subscribers report claims that Ericsson, Alcatel-Lucent, Nokia Siemens Networks, and Huawei were the leading vendors in terms of core IMS equipment deployments, and NTT Communications and SK Telecom were the most successful vendors in the Asia Pacific region.
There are a few negative impacts, says the report, such as sharp cost competition, complex deployment demands, and interoperability.
In terms of IMS interoperability, TMCnet has reported earlier about a successful demo between a CSCF server and: a HSS to manage, verify and allow calls; an Instant Messaging Application Server to check live voice and text chats; an offline charging system to collect and transmit unique billing and call information; and User Equipment such as laptops, computers, and IP phones.
The demonstration conducted successfully, continues TMCnet’s report, calls between local subscribers located anywhere within their network and cross-continent users working on different platforms, and also calls with reverse roaming case scenarios, to comprehensively illustrate multimedia streaming and video conferencing by creating, modifying and delivering sessions within such diverse environments without a hitch.

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.

Vivek Naik is a contributing editor for TMCnet. To read more of Vivek's articles, please visit his columnist page.

Edited by Michael Dinan

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