REDWOOD CITY, USA: Dell’Oro Group, the trusted source for information about the networking and telecommunications industries, recently reported that the total carrier IP telephony market is expected to continue to contract in 2009 as service providers defer as much capital spending as possible outside of strategic, long-term investments until 2010 or even later, and wait until they can better gauge prospective business conditions.
Despite this contraction, the market is forecast to grow over the next five years and approach $4 billion by 2013.
“While the market is in the midst of a large contraction, we forecast that service providers will resume network modernization projects in 2010 as the economy stabilizes,” said Greg Collins, Vice President at Dell’Oro Group. “Beyond 2010, we expect market growth to be gradual, mirroring the migration of circuit-switched POTS subscribers to voice-over-broadband services,” Collins added.
The market for IMS core equipment (i.e., CSCF and HSS) is forecast to grow by a compounded average of 44 percent per year between 2008 and 2013 to reach $743 million in 2013.
The report also indicates that the market for mobile-subscriber-related IMS core equipment is expected to grow more than 50 percent in 2010, and that growth will significantly increase in 2011 as LTE-related deployments surge.
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