IP Telephony Carrier Market Breaks the $1 Billion per Quarter Mark

Nortel and Nokia Siemens Networks’ Strong Softswitch Sales Boost the Market

Redwood City, Calif. – November 19, 2007 – A recent report published by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals that worldwide IP telephony carrier market quarterly revenues exceed $1 billion for the first time in the third quarter of this year. The strong market results were due in large part to robust softswitch revenues.

“The increase in softswitch sales this quarter was particularly encouraging due to the strong growth of POTS and T1/E1 subscriber license shipments, which more than doubled year-over-year,” said Greg Collins, Vice President at Dell’Oro Group. “The surge in these license shipments indicates that service providers are accelerating their slow transition away from circuit switches to IP-based solutions as they convert their legacy POTS lines to softswitches” Collins added.

The report indicates that Nortel and Nokia Siemens Networks each accounted for almost 50 percent of the sequential increase in softswitch revenue for the quarter.

All other IP Telephony carrier market segments also contributed to the third quarter’s record revenue. The emerging session border controller (SBC) and voice application server markets each grew in double-digits compared to the prior quarter, while media gateways, the largest market segment, showed modest sequential growth.

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. 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.