IP Telephony Carrier Market Contracts as Service Providers Focus on Revenue Generation
Huawei and Nortel Gain Share in the Weak Market
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A recent report published by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, in the second quarter of this year, the IP Telephony Carrier market contracted 10 percent sequentially to $861 million.
“Through the first half of 2008, service providers have had trouble justifying the investment in infrastructure upgrades, because revenues from their fixed-line business continue to decline as prices erode and subscribers switch over to cable and, to an ever greater extent, wireless services,” said Greg Collins, Vice President at Dell’Oro Group. “Service providers are showing that they would rather direct investment dollars toward revenue generating projects than toward equipment that might make existing services more profitable. This trend is especially visible in North America where a weak economy is putting more pressure on revenue growth for the large network operators with national reach,” he added.
A bright spot during the quarter was the voice application server market which grew nearly 30 percent compared to the year-ago quarter as these products often are used for new, revenue-generating services and seem to have been less affected by the weak quarter.
During the quarter, Nortel and Huawei managed to gain market share sequentially. A strong point for Nortel was sales to regional and rural operators in North America. Huawei’s strength continues to come from developing regions in Asia and EMEA, where due to economic expansion driving new construction, there continues to be substantial investment in fixed-line voice services.
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 Emily Kendall, call +1.650.622.9400 x223 or email .
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 http://www.DellOro.com.