IP Softswitch

 

August 05, 2011

 

In the last decade, legacy equipment has grossed more than $20 billion in sales. Legacy equipment, which connects wireless circuit-switched networks to new Voice over Internet Protocol networks, has single handedly led to the global deployment of VoIP networks. This could all change with the implementation of the effective IP softswitch.

A softswitch is a replacement for the routed landlines, which relied on the traditional switchboard. As a centerpiece for any telecommunications network, IP softswitch is adding improved technology via an access server or media gateway, according to this Sacbee piece.

A report by the Dell’ (News - Alert)Oro Group states that core voice equipment revenues with service providers are expected to decline by 2 percent every year through 2015. On the other hand, VoIP is expected to boom. Voice application servers, session border controllers and IP multimedia subsystem devices should see a 20 percent increase annually. This anticipated growth is a great news for those competing in the IP softswitch space.

Much of this drive toward implementations of VoIP and IP softswitch technology is based on business users seeking to leverage lower cost communications and launch Unified Communications (News - Alert) platforms. IP technology streamlines this process and provides companies with the opportunity to converge both voice and data.

As networks experience voice upgrades through high-speed wireless networks, VoIP-only markets should see a growth of at least 43 percent, according to Chris DePuy, analyst at Dell’Oro Group. As outlined in the report, Carrier IP Telephony 5-Year Forecast Report, services that utilize IP softswitch like Skype and Google (News - Alert) Voice, could pose challenges as well as opportunities for the voice equipment industry.

Even though there has been a significant loss of wireline subscribers, DePuy expects the VoIP-only segment to see single-digit growth into 2015 with service provider upgrades to IP softswitch. In a highly volatile market such as this, the report also estimates that Voice over LTE (News - Alert) subscribers offer unique additions to the 5-year revenue forecasts.

Dell’Oro Group features an intense overview of the Carrier IP Telephony industry in this forthcoming report. In it, businesses will find tables of revenue expectations, selling prices, licensure information for IP softswitches, media gateways, and breakouts of high, medium and low density media gateways.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Stefania Viscusi