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November 23, 2010
Demand Up, Prices Down for Carrier VoIP and IMS Equipments
By Ashok Bindra, TMCnet Contributor
 

Market research firm Infonetics Research released its third quarter report for Service Provider VoIP Equipment and Subscribers, as well as for the worldwide IP Multimedia Subsystem (News - Alert) (IMS) Equipment and Subscribers.

In the VoIP equipment arena, the total service provider VoIP equipment market, including trunk media gateways, SBCs, media servers, softswitches, and voice application servers, decreased 9 percent from second quarter to third quarter this year. The total revenue in this quarter was $511 million.

While revenue went down for the quarter, shipments for almost all segments in the market are up sequentially, according to Infonetics. This report also indicates that Asia Pacific is the only region expected to post year-over-year revenue growth in 2010 for service provider VoIP equipment. Also, with respect to worldwide revenue in the third quarter 2010, GENBAND leads the combined carrier VoIP and IMS equipment market.

Likewise, in the IMS sector, the worldwide IMS equipment market, including IMS core equipment and application servers, grew 4 percent in the third quarter 2010, on the heels of a 34 percent jump in the previous quarter.

In the third quarter, as per Infonetics report, the top four vendors include Alcatel Lucent, Ericsson, Huawei, and Nokia (News - Alert) Siemens Networks.

Overall, the IMS equipment market is experiencing strong and healthy growth, driven in the near-term by the continued adoption of VoIP services and service provider migration of VoIP services to IMS networks. The Infonetics’ research analyst believes that in the longer-term, the IMS market will get a boost from the push for enhanced mobile services, with LTE being the most significant driver.

In a statement, Diane Myers, directing analyst for VoIP and IMS at Infonetics Research (News - Alert), said, “The number-one story that will come out of 2010 for the IMS and carrier VoIP equipment markets is China, where conditions are driving volumes up and pushing prices down. There are large network transformation projects underway in China, so demand for equipment is very strong, but at the same time, vendors are willing to push the pricing limits to get into strategic accounts.”

She added, “In the third quarter of 2010, every product category except media servers was impacted by pricing pressures, so while shipments were up for most segments, total worldwide revenue took a hit. Looking at the long-term prospects, the network elements that are best poised for solid growth are those that facilitate the migration to all-IP networks, such as session border controllers (SBCs).”

Vendors tracked in the Infonetics’ quarterly Service Provider VoIP Equipment and Subscribers report include Acme Packet, Alcatel-Lucent, AudioCodes, BroadSoft, Cisco, Dialogic, Ericsson, GENBAND, Huawei, Iperia, Italtel, MetaSwitch, Movius (News - Alert), Nokia Siemens, RadiSys Convedia, Sonus, Technicolor (Thomson), Tekelec, Xener, ZTE, and others.

Likewise, in the quarterly IMS report, vendors tracked include Alcatel-Lucent (News - Alert), Broadsoft, Ericsson, Huawei, Mavenir, Nokia Siemens, ZTE and others.


Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Jaclyn Allard


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