HILLSBOROUGH, USA: Exact Ventures found the total next generation network (NGN) voice and IP multimedia subsystem (IMS) core market contracted 20 percent sequentially in 3Q11 to $1.5 billion, due in part by seasonal weakness, delays in capital spending, some of which will boost 4Q11, and volatility in the IMS Core market.
Business VoIP continued to fuel the growth categories in the wireline voice core market as enterprise session border controller (E-SBC) and voice application server (VAS) sales partially offset declines in other wireline voice core product categories.
"The SBC market continues to experience strong growth and to attract investment. Metaswitch recently entered the market with its new Perimeta product line and Avaya acquired security and E-SBC vendor Sipera to bolster its Aura unified communications portfolio and specifically its SIP Trunking solutions," said Greg Collins, founder and principal analyst at research firm Exact Ventures.
"Such investment is likely to continue, as VoIP services still comprise less than one quarter of fixed lines and a negligible amount of wireless lines. As the transition to VoIP continues, so will the growth of the SBC and VAS market segments."
Despite contracting on a sequential basis, the IMS core equipment market was up year-over-year. Market growth is forecast to accelerate in 2012 as IMS continues to gradually displace NGN voice equipment and as voice-over-LTE deployments begin to boost the market.
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