Cross-Currents Characterize the Service Provider Voice Core Market, Forecasts Dell'Oro Group

Voice Over LTE Spending Stimulating An Upgrade Cycle

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Aug 07, 2012, 09:00 ET

REDWOOD CITY, Calif., Aug. 7, 2012 /PRNewswire/ -- Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, reported that service provider voice core equipment spending over the next five years is expected to hover at approximately $8 billion per year. The market is characterized by two major cross currents—declining sales of legacy voice equipment and fast-growing sales of voice and data segments of the market—which include IP Multimedia Subsystem (IMS) Core equipment, Voice Application Servers and Session Border Controllers. The latter segments are expected to grow at nearly a 20 percent compounded annual growth rate over the next five years.

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"By mid next year, we expect as many as ten service providers will have launched Voice over LTE" said Chris DePuy, Analyst at Dell'Oro Group. "This new voice system is catalyzing significant infrastructure spending that will enable service providers to compete more effectively with Over The Top services and to reduce the cost to operate their networks. Voice over LTE absolutely is a catalyst which will propel sales levels of the new equipment to eclipse those of the old equipment," finished DePuy.

Projections for the Session Border Controller market remain essentially unchanged despite volatile results by vendors such as Acme Packet and Sonus Networks. The report also includes estimates for Voice over LTE (VoLTE) subscribers, IMS Core equipment, Softswitch and Media Gateway equipment, and Enterprise Session Border Controllers.

About the Report
The Dell'Oro Group Carrier IP Telephony 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 IMS Core (CSCF and HSS), softswitches, media gateways, session border controllers, and voice application servers. The report also includes an analysis of VoLTE. To purchase this report, contact Jessica Hsueh at +1.650.622.9400x222, or email at [email protected].

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.

SOURCE Dell'Oro Group