Carrier VoIP Equipment Market Up 69%

November 22, 2004

Got this release over the weekend with some interesting VoIP industry statistics I thought I'd share.

Carrier VoIP Equipment Market Up 69% Year-over-Year in 3Q04

BOSTON, Massachusetts, November 22, 2004--Worldwide next gen voice product revenue totaled $452 million in 3Q04, up 13% from 2Q04 and up 69% year-over-year, according to Infonetics Research’s quarterly market share and forecast service, Next Gen Voice Products. Annual revenue is projected to grow from $1.3 billion in 2003 to $4.8 billion in 2007, representing a strong CAGR of 39%.

"Most equipment categories saw sequential growth this quarter," said Infonetics Research's Kevin Mitchell, directing analyst and co-author of the report. "Voice application servers, session border controllers, and softswitches, especially Class 5 licenses and revenue, grew the most. This indicates that service providers are really beginning to change gears, from investing in infrastructure to investing in next gen equipment that will allow them to offer new services."

3Q04 Market Highlights

Class 5 softswitch revenue was up a remarkable 34% to $76 million
Nortel is the revenue share leader in the Class 5 softswitch space with almost half the worldwide revenue; Siemens is second

The worldwide media gateway market grew 5% from 2Q04 to 3Q04, with most growth coming from the ATM switch-based voice gateways
Cisco leads in worldwide media gateway revenue market share, but most sales are due to their universal port RAS and are not solely used for VoIP; Sonus is second
Next Gen Voice Products tracks media gateways (Class 5 packet switches, RAC VoIP gateways, ATM switch voice gateways, and packet voice gateways); media servers; session border controllers; softswitches (Class 4 and Class 5 applications); and voice application servers. Forecasts are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA).

Companies tracked in this service include Acme Packet, Alcatel, AudioCodes, BayPackets, Broadsoft, CIRPACK, Cisco, Convedia, CopperCom, Ericsson, Huawei, IP Unity, Italtel, Jasomi, Kagoor, LongBoard, Lucent, Marconi, MetaSwitch, Mera, Netrake, NexTone, Nortel, Nuera, Pactolus, sentitO, Siemens, Sonus, Sylantro, Tekelec, Ubiquity, UTStarcom, Veraz, VocalData, and others.

For the table of contents, log on to Infonetics Research’s Information Portal at www.info.infonetics.com.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.



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