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Dell' (News - Alert)Oro Group’s recent “Carrier IP Telephony Quarterly Report” has found that the overall Carrier IP Telephony market grew in revenue by 10 percent sequentially and remained flat on a year-over-year basis.

According to the report, the high growth experienced by Voice Application Server or “VAS” as well as the Session Border Controller or “SBC” market, has offset the declines in media gateway and softswitch revenues.

Revenue for VAS - driven by the deployment of hosted business services - grew by more than 15 percent while that of SBCs grew by nearly 40 percent over the previous year.

Earlier last year, Frost & Sullivan (News - Alert) had reported worldwide SBC revenues, which topped $120 million in 2006, were projected to rise quickly through 2010. In addition, Infonetics Research had projected  a compound annual growth rate of 44 percent, with revenues reaching $541 million by 2010.

"In the second quarter, there were signs of increased competition in the Session Border Controller market," said Chris DePuy, analyst at Dell'Oro Group.

"Session Border Controller market revenues accelerated to 38 percent year-over-year and saw one new entrant, Alcatel-Lucent (News - Alert), grab four percent revenue share."

Also, GENBAND maintained a lead position in terms of revenue share in the wireline voice core market, while Ericsson (News - Alert) retained top rank in wireless voice core, according to the reports findings.

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