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Fixed-line Carrier IP Telephony Market Forecast to Rebound in 2010

Recession and Shift to Wireless are Impacting Near-term Growth

Redwood City, Calif. – February 04, 2009 – Dell'Oro Group, the trusted source for information about the telecommunications and networking industries, recently reported that worldwide carrier IP telephony equipment revenues are forecasted to rebound in 2010, after expected declines in 2008 and 2009. The market is projected to grow in single-digits from 2010 through 2013.

According to the Dell'Oro Group report, voice services continue to transition away from fixed connections to mobile or wireless connections, reducing the market for associated fixed-line equipment. The number of fixed telephony lines peaked in 2006 at nearly 1.3 billion and continues to fall. At the same time, the mobile subscriber base has been growing by more than one million subscribers per day.

"The market for carrier IP telephony equipment began to be negatively affected by the global economic slowdown in mid-2008," said Greg Collins, Vice President at Dell'Oro Group. "Service providers, especially in developed regions, began reducing their capital spending to better align with their lowered growth expectations and began to focus their capital spending on revenue-generating projects, like IPTV and fiber-to-the-home (FTTH), at the expense of modernizing their considerable base of equipment for customers of plain-old telephone service (POTS). We expect that market for fixed-line carrier IP Telephony equipment to rebound as the economy improves, network modernization rebounds and the market increasingly transitions to voice-over-broadband," Collins added.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the Carrier IP Telephony industry with tables covering manufacturers' revenue, average selling prices, license/channel shipments for softswitches, media gateways, and session border controllers. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, contact Emily Kendall at +1.650.622.9400 x223 or via email Emily@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 enable 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.

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