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VoIP Feature Article


Johanne Torres

[January 10, 2005]

Report: Cell Phone Sales to Boost VoIP IC Market


Since the start of the New Year, I have been reporting on the development of VoIP-enabled devices. Companies in the ranks of Motorola, Uniden and Texas Instruments (TI) have been dominating the headlines this January with the deployment of hybrid/dual network handsets, and 2005 promises to be a year of great handset technology development for the corporate and residential consumer market. According to the research firm In-Stat, VoIP IC revenue will rise from $137.6 million in 2003 to $938.4 million in 2008.

In the report "Hearing the Call of Cellular: VoIP IC Market Analysis", it states that the main driver for this rapid growth will be the integration of VoIP functionality with many "dual-mode" cellular/VoIP (over WLAN) handsets, gaining mainstream traction next year and ramping up extremely quickly in 2007 and beyond.

"In-Stat believes that Voice over Internet Protocol (VoIP) is the future of voice communications," said Sam Lucero, In-Stat analyst. "And while stationary VoIP deployments have been the first to gain traction in the market, mobile VoIP actually represents the greater market opportunity for VoIP silicon and equipment vendors."

The analysts compare rapid dual network capability with mobile devices to how quickly handset manufacturers combine camera functionality in their products. In the near future, the study reports that virtually all cell phones will come integrated with WiFi functionality toward the end of the forecast period.

In-Stat names Texas Instruments (TI) as the current dominator of the VoIP IC market, particularly the IP phone IC and CPE VoIP Gateway IC segments. Analysts concluded that while several dozen vendors nominally participate in the VoIP IC market, only a handful of vendors account for the majority of shipments in each of the three main segments.

The report also details revenue, unit, and average selling price forecasts through 2008 for three market segments: IP phone ICs, CPE VoIP Gateway ICs, and Carrier Infrastructure VoIP Gateway ICs. This report examines the market factors influencing growth, as well as the changing technology for VoIP chipsets. In-Stat says that the analysis will be of particular benefit to VoIP IC product managers, as well as financial analysts and consultants needing to evaluate the market potential for the VoIP IC industry.



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