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VoIP Switch - Voice over LTE Accelerates the Sale of Voice Core Equipment Including VoIP Switches

August 21, 2012


Just after the release of Visiongain’s (News - Alert) recent report on the VoIP switch market, Dell’Oro Group has now revealed that service provider voice core equipment spending is expected to hover at approximately $8 billion per year over the next five years. The voice core equipment market includes IP Multimedia Subsystem (News - Alert) (IMS) Core equipment, voice application servers and session border controllers. 

Declining sales of legacy voice equipment and fast-growing sales of voice and data segments of the market are the two major trends affecting the market, according to the research. These voice and data segments are expected to grow at nearly a 20 percent compounded annual growth rate over the next five years.

Voice over LTE (News - Alert) is a catalyst that pushes the sales levels of new equipment to eclipse those of old equipment. Dell’Oro Group expect as many as ten service providers will have launched Voice over LTE by mid next year.

"This new voice system is catalyzing significant infrastructure spending that will enable service providers to compete more effectively with Over The Top services and to reduce the cost to operate their networks,” said Chris DePuy, analyst at Dell'Oro Group, in a statement.

However, projections for the session border controller market remain essentially unchanged despite volatile results by vendors such as Acme Packet and Sonus Networks (News - Alert).  The report also includes estimates for Voice over LTE (VoLTE) subscribers, IMS Core equipment, softswitch, media gateway equipment, and enterprise session border controllers.

According to a recent TMCnet piece that detailed the recent Visiongain report on VoIP switches titled, “The Mobile VoIP Market 2012-2017,” the mobile VoIP market will see revenues upwards of $2.5 billion, driven by smartphone uptake and increasingly cash conscious and tech savvy consumers.There has also been a steady increase in the number of successful partnerships between VoIP vendors and mobile operators that are continuing to deploy mobile VoIP services.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Jamie Epstein

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