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August 28, 2010

Session Border Controllers Market Return Carrier VoIP Equipment to Growth

By Ed Silverstein, TMCnet Contributor


The session border controller (SBC) market is on fire, with worldwide revenue up 27 percent sequentially and up 70 percent from this quarter last year, a signal that IP-to-IP connectivity continues to overtake IP-to-TDM connectivity, according to the latest analysis from Infonetics (News - Alert) Research.

SBCs and media servers will be the main growth engines of the carrier VoIP equipment market for 2010, predicts Diane Myers, directing analyst for service provider VoIP and IMS at Infonetics Research.

Myers adds that, “The IMS market also is experiencing strong and healthy growth, driven by the continued adoption of fixed-line VoIP services and key operators in Asia Pacific and EMEA that are beginning their fixed-line network transformation utilizing IMS.”

The total service provider VoIP equipment market, including trunk media gateways, SBCs, media servers, softswitches, and voice application servers, increased to $564.7 million in 2Q10, up 5.3 percent from the previous quarter.

Worldwide, revenue for every product category except trunk media gateways grew sequentially in 2Q10.

Still, all segments but SBCs are down year-over-year (from 2Q09 to 2Q10).

The worldwide IP Multimedia Subsystem (News - Alert) (IMS) equipment market, including IMS core equipment and application servers, jumped 33.5 percent in 2Q10 over 1Q10

In 2Q10, Huawei, Ericsson (News - Alert), and Nokia Siemens Networks recorded solid IMS sales, and Alcatel-Lucent and ZTE posted the largest revenue growth over 1Q10

The “lumpy” nature of the IMS equipment market – an extremely high quarter followed by a down quarter – is expected to continue for the next 6 to 8 quarters, as large operators place purchase orders in a single quarter and new IMS deals hit sporadically.

Significant drivers for the IMS market over the long-term include Long Term Evolution (LTE (News - Alert)) deployments and the push for enhanced mobile services, including mobile instant messaging (IM), video sharing, and Rich Communications Suite (RCS).


Ed Silverstein is a contributing editor for TMCnet's InfoTech Spotlight. To read more of his articles, please visit his columnist page.

Edited by Ed Silverstein




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