Dell'Oro Group Raises Forecast for IP Telephony Carrier Market; Service Providers Seek to Deploy VoIP Services Rapidly, Likely Same With IMS

Business Wire, August 3, 2006

REDWOOD CITY, Calif. -- According to a recently published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, sales of softswitches and media gateways are forecasted to double from $2.5 billion in 2005 to $5.0 billion in 2010. Robust sales of Class 4 trunk networks drove the market for Next Generation Network equipment in 2005. However, Dell'Oro Group predicts that Class 5 subscriber solutions will drive growth in the future as Voice over Internet Protocol (VoIP) services gain popularity among both consumers and businesses.

"As Service Providers race to offer new VoIP services, most Next Generation Networks overlay the existing circuit switch networks," said Steve Raab, Director of IP Telephony research at Dell'Oro Group. "Initial IP Multimedia Subsystem (IMS) networks will follow a similar overlay strategy enabling Service Providers to offer fixed-mobile-convergence and multimedia services rapidly, while carriers defer the complete network transformation from circuit switches to a fully VoIP network to future years," he added.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the IP Telephony Carrier industry with tables covering manufacturers' revenue, average selling prices, license/channel shipments for softswitches, and media gateways. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, contact Margaret Miles at 1.650.622.9400 x225 or via email at Margaret@Delloro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at 1.650.622.9400 or visit www.DellOro.com.