Media Gateway Revenues Drive Sequential Growth in 4Q06

Cisco Captures Lead in IP Telephony Carrier Market

Redwood City, Calif. – February 20, 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 continued to grow during the last quarter of 2006, primarily due to strong media gateway sales. Cisco achieved the leading position for total revenues in the fourth quarter, just edging out Nortel.

“Cisco’s revenue growth benefited from robust media gateway sales to North American cable MSOs,” commented Steve Raab, Director of IP Telephony Carrier research at Dell’Oro Group. “Despite its lower sales in 4Q06, Nortel remains the overall revenue leader for the full year 2006. With the impending transition to IMS, competition will intensify as manufacturers that have invested heavily in IMS solutions, such as Ericsson and Alcatel-Lucent, vie for market leadership,” added Raab.

The report also indicates that emerging product segments, including session border controllers and voice application servers, are expected to deliver the strongest growth during 2007 as carriers expand adoption of IP Telephony in their networks.

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.