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January 05, 2012

Business VoIP Drives Wireline NGN IP Multimedia Equipment Market

By Rajani Baburajan, TMCnet Contributor


According to a recent report from Exact Ventures, the total next generation network (NGN) voice and IP multimedia subsystem (IMS) core market declined 20 percent sequentially in 3Q11 to $1.5 billion.

However, business VoIP continued to fuel the growth categories in the wireline voice core market, mainly attributed to the growth in enterprise session border controller (E-SBC) and voice application server (VAS) sales.

The growth of E-SBC and VAS partially offset declines in other wireline voice core product categories, Exact Ventures' NGN Voice and IMS Core Quarterly Report said. Further, the SBC market continues to experience strong growth and to attract investment.

The growth is evident from the recent investments from leading vendors. Metaswitch recently entered the market with its new Perimeta product line and Avaya acquired security and E-SBC vendor Sipera (News - Alert) to bolster its Aura unified communications portfolio and specifically its SIP Trunking solutions.

"Such investment is likely to continue, as VoIP services still comprise less than one quarter of fixed lines and a negligible amount of wireless lines," said Greg Collins, founder and principal analyst at research firm Exact Ventures, in a statement. “As the transition to VoIP continues, so will the growth of the SBC and VAS market segments.”

NGN IMS core equipment market contracted due in part by seasonal weakness and delays in capital spending, some of which will boost 4Q11, and volatility in the IMS Core market. Despite contracting on a sequential basis, the IMS core equipment market was up year-over-year. 

However, IMS core equipment market growth is forecast to accelerate in 2012 as IMS continues to gradually displace NGN voice equipment and as voice-over-LTE (News - Alert) deployments begin to boost the market, according to the report.

Earlier in June, Infonetics noted that IP phone market is on the rise and PBXs are recovering. The research found that the total of components of TDM PBX (News - Alert), KTS, IP PBX systems, IP phones, and UC applications was $2.52 billion in the first quarter of 2011, down 4 percent from the fourth quarter in 2010.


Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Stefanie Mosca




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