The Dell’ (News - Alert)Oro Group, which studies the networking and telecommunications industries, recently reported that the total carrier IP telephony market is expected to stabilize in 2010 after two years of steep revenue 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.

 

During 2010, Voice-over-IP subscriber growth “is expected to accelerate due to an improving housing market and aggressively priced bundled service offerings from service providers,” the study found, adding that 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.

 

Collins added that 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.”

 

Dell’Oro officials say 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,” Collins added.

 

Late last year TMC’s (News - Alert) Stefania Viscusi reported that a report from Dell’Oro Group shows that business VoIP remains a hot area in today’s marketplace as both large enterprises and SMBs are embracing IP technologies and UC.

 

“As a result,” she wrote, “the market grew almost 10 percent sequentially to $782 million during the third quarter of 2009, the report noted.”

 

Collins said at the time that enterprises as well as small and medium businesses “increasingly are embracing IP Centrex, unified communications and IP business trunks or SIP trunks,” and that investment in equipment to support these services “offers service providers attractive near-term returns, and has been a boost to the market.”

 

Using these services, “carriers have a cost effective alternative for delivering high quality services without “having to worry about multiple business relationships with multiple carriers,” Jeanette Yeager, major account executive at VoIP Innovations (News - Alert) told TMC’s Erik Linask in an interview recently.