IP Telephony Carrier Market Encounters Seasonal Softness in the First Quarter of 2007

Siemens and Italtel Benefit as Subscriber Services Drive Growth

Redwood City, Calif. – May 23, 2007 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide IP telephony carrier market declined sequentially in the first quarter of 2007, characteristic of seasonal softness which follows robust year-end spending by service providers.  This market continues double-digit year-over-year growth as service providers transition their networks to voice-over-IP (VoIP) technology.

“Subscriber Services have emerged as the market growth driver with subscriber license shipments climbing 36 percent compared to the same period last year," said Steve Raab, Director of IP Telephony Carrier research at Dell’Oro Group.  “Cable and DSL service providers bundling VoIP service with broadband, and the use of softswitches to expand traditional telephone service, all contribute to a broad-based demand for softswitches.  This quarter, Siemens and Italtel performed particularly well,” Raab added.

The report also reveals that equipment sales for core trunk networks continues to climb, albeit at a slower pace than the expansion now occurring for subscriber edge of the network.

About the Report

The Dell’Oro Group IP Telephony Carrier Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, license/channel shipments for softswitches, media gateways, session border controllers and voice application servers. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, please contact Margaret Miles, call +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.