Overall Voice Core Market Expected to Decline Modestly, According to Dell'Oro Group

VoIP-only Segments Expected to Grow Over 20% Annually

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Jul 28, 2011, 02:00 ET

REDWOOD CITY, Calif., July 28, 2011 /PRNewswire/ -- Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, reported that service provider core voice equipment spending is expected to decline at a 2% rate through 2015. While the majority of carrier voice equipment revenues is expected to decline, the VoIP-only segment, which includes Voice Application Servers (VAS), Session Border Controllers (SBC) and IP Multimedia Subsystem (IMS) devices, is projected to grow over 20% annually. Since 2002, spending on legacy equipment that connects wireline circuit switched networks to new Voice-over-Internet-Protocol (VoIP) networks has totalled to over $20 billion. This large worldwide investment has resulted in widespread deployment of VoIP networks.

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"We expect a robust growth of 43% in the wireless VoIP-only market through 2015, as emerging high-speed wireless networks experience voice upgrades," said Chris DePuy, Analyst at Dell'Oro Group. "In addition, we expect so-called Over-The-Top (OTT) services such as Skype and Google Voice to provide both challenges and opportunities to the voice equipment industry during our forecast period. Despite our expectation of a net loss of wireline subscribers over the next five years, we expect the wireline VoIP-only segment to experience high single-digit growth through 2015, driven by service provider upgrades to an all IP network," added DePuy.

The report also shows how Voice over LTE (VoLTE) subscriber estimates and wireless VoIP-only 5-year revenue forecast relate to each other in this high growth market.

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 softswitches, media gateways, session border controllers, and voice application servers. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, contact Emily Kendall at +1.650.622.9400x223, 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