In spite of great bursts of news – like $7 billion in broadband stimulus funding – it’s been a tough two years in the telecommunications industry.

 

Still, Redwood City, Calif.-based Dell’ (News - Alert)Oro Group, a market research firm specializing in networking and telecommunications industries, is saying that the total carrier IP telephony market is expected to stabilize in 2010 after two years of steep revenue declines.

 

During 2010, VoIP subscriber growth is expected to accelerate due to an improving housing market and aggressively priced bundled service offerings from service providers, according to Dell’ORO researchers. In addition, improved economic conditions are likely to bolster network modernization projects that were deferred during the brunt of the recession and associated economic uncertainty.

 

The report indicates that despite expected increases in equipment shipments, the market is expected to contract slightly in 2010 due to price declines.

 

“Beyond 2010, we forecast the market to grow in the low single-digits through 2014,” said Greg Collins, vice president at Dell’Oro Group. “Future growth in broadband subscribers will likely be boosted over the next five years by government initiatives, such as the National Broadband Plan in the United States, which will target greater availability and adoption of broadband services to hard-to-service customers and customers who otherwise are unable to afford it. We believe that growth in VoBB services will mirror, or at least closely follow, broadband deployments. These initiatives are not likely to affect the equipment market until 2011 as regulations and spending grants get finalized.”