Carrier VoIP Takes Off

Rich Tehrani : Communications and Technology Blog - Tehrani.com
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Carrier VoIP Takes Off

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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