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Carrier VoIP Takes Off

November 21, 2005

According to Dittberner Associates the market for carrier VoIP products has grown at an astonishing rate of 67.8% in the third quarter of 2005 vs. the second quarter. Over 27.3 million media gateway, softswitch and integrated VoIP ports were shipped during the quarter.

New leaders emerged during the 3Q period. Huawei Technologies dominated the quarterly results shipping 12.36 million VoIP ports and displacing Nortel the consistent leader until now. Siemens maintained its second place gaining 16% of global market share. Nortel Networks slipped down to the third place with 13% of market share.

Huawei’s and Siemens’ shipments can be attributed to growth in APAC and CALA regions of more than 202% and 81% respectively over the last quarter. However, the recent carrier consolidations in the North America region have led to a reduction in NA shipments of 12% q-o-q.

3Q05 Worldwide VoIP Ports Market Share


Vendor

Total VoIP Ports Shipped (MG, SF, Int)

Total Worldwide VoIP Market Share (%)

Huawei Technologies

12,362,620

45.17%

Siemens

4,400,000

16.08%

Nortel Networks

3,594,717

13.13%

Tekelec

1,520,671

5.56%

Sonus Networks

1,165,000

4.26%

Others

4,324,547

15.80%

Total

27,367,555

100.00%

                                                Source: Dittberner Associates, Inc.


“With the acceleration of large scale projects by carriers to upgrade their packet networks, we will see visible continued growth worldwide in terms of VoIP port shipments in the upcoming quarters”, says Leena Deshpande, Research Analyst with Dittberner Associates, Inc.

Although shipments grew 70%, the pricing pressures and economies of scale derived from large contracts have resulted in an increase of only 49% over the last quarter in worldwide quarterly VoIP revenue. The VoIP revenue during the quarter was US$ 609 million, while the VoP (Voice over Packet; IP/ATM/TDM) revenue was US$ 671 million.

The carrier space continues to be an amazing place to be in the market and the rapid ascent of Huawei is very impressive. I just wonder why Lucent and Cisco aren’t represented on this list.

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AT&T Logo

November 21, 2005

Here is the new AT&T logo. Enjoy.

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VoIP ICs Gaining Traction

November 21, 2005

Here is an article on In-Stat's report of VoIP ICs. The report focuses on the following companies:

Texas Instruments
Broadcom
Mindspeed
Infineon
Octasic
Centillium
Conexant
Atmel
Freescale
PMC Sierra
SyChip

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China Skype News

November 21, 2005
The latest news on Skype in China is that Niklas Zennstrom is negotiating with China Telecom and China Netcom to allow SkypeOut services in China. This comes on the heels of the Tom Online joint venture the company inked. The simplified Chinese version of Skype the two companies collaborated on in fact have attracted 4 million registered Chinese users.

Excerpt:

In China, Skype has made an effort to show its sensitivity to the concerns of operators. The Chinese-language version of the Skype software only permits calls from one PC to another; SkypeOut calls are not permitted. However, Chinese users can access SkypeOut by downloading the software directly from the Skype Web site.

So it was not a surprise to hear Chinese telecom carriers set barriers for Skype in recent months.
Verso Technologies Inc., of Atlanta, Georgia, said weeks ago that it was about to win a contract to block Chinese Internet users from using Skype VoIP software.

The company also revealed that a Chinese telecommunications operator had begun a paid trial of Verso's NetSpective M-Class filter, a product that is designed to block VoIP calls made using Skype, as well as other peer-to-peer applications. If the paid trial now underway in one Chinese city goes well, the operator will purchase the NetSpective M-Class application filter before the end of the year, it said. Financial terms of the deal were not disclosed.

While Verso said in its release that the use of Skype is illegal in China, the situation is more nuanced.
Verso did not provide additional details of the trial to block Skype or name the Chinese operator behind the project, but every one can guess that must be China Telecom.
In September, China Telecom was reported to begin blocking SkypeOut calls made from Shenzhen, a southern Chinese city lies along the border with Hong Kong.

"The whole thing looks to me like a plot to make back the money China Telecom thinks they lose because of Skype," complained one user in Shenzhen, who said his access was blocked but his wife, also in Shenzhen, was able to access the system. Other users in Shanghai said they were still able to access the system.

Long distance business is an important revenue source for both China Telecom and China Netcom, accounting for about 20% of China Telecom's total revenue last year.

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