Voice-over-Broadband Subscribers to Drive Wireline Voice Core Market, Research Shows

By Ed Silverstein, TMCnet Web Editor

The Dell' (News - Alert)Oro Group reports  that wireline voice core equipment revenues will experience low, single-digit percentage growth through 2014, partly as a result of an increase in Voice-over-Broadband, or VoBB, subscribers.

The projections showed that wireline voice core equipment revenue continues to be squeezed out as more technologies crowd in, according to FierceTelecom:

As government initiatives drive the adoption of high-speed Internet connections to homes and small businesses, VoBB subscribers are forecast to reach 309 million in 2014, a CAGR of 27 percent since 2009, Dell'Oro Group said.

"The expected increase in VoBB subscribers, combined with the need of those subscribers to communicate with legacy circuit-switched voice services subscribers, will drive a modest increase in media gateway channel shipments," said Greg Collins, vice president at Dell'Oro Group.

 "This growth in channel shipments, however, will be limited as service providers shift to all-IP networks. Price declines are also expected to thwart market revenue growth in wireline media gateways, but will not be enough to offset growth in the total wireline voice core market," added Collins.

The report also shows that the wireless network transition from legacy circuit switching to next generation network equipment consisting of media gateways and softswitches is largely complete.

This segment, after robust shipment growth in 2008 spurred by modernization and expansion projects in China and India, contracted almost 30 percent in 2009, and is forecast to further decline in 2010 as service providers increasingly direct their investments towards IP Multimedia Subsystems, or IMS.

The Dell'Oro Group Carrier IP Telephony 5-Year Forecast Report offers a complete overview of the Carrier IP Telephony industry with tables covering manufacturers' revenue, average selling prices, license/channel shipments for softswitches, media gateways, and session border controllers. The report also includes breakouts of high density, medium density, and low density media gateways.

(source: http://www.tmcnet.com/channels/voip-termination/articles/96086-voice-over-broadband-subscribers-drive-wireline-voice-core.htm)