Business Services Industry
IP Telephony Carrier Market Slides in the First Quarter 2006, According to Dell'Oro Group; Siemens Narrows the Gap With Nortel
Business Wire, May 18, 2006
REDWOOD CITY, Calif. -- A recently published report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals that IP Telephony Carrier market revenues fell 12 percent in the first quarter. The report indicates that even after the seasonal softness in the first quarter, the market is rapidly expanding with sales increasing 43 percent over the same period last year.
During the quarter, competition intensified as vendors including Alcatel, Cisco, and Nortel, lost share to Sonus Networks and Veraz Networks. Siemens captured the largest revenue increase for the quarter, on strong sales to Latin America.
"Buying patterns of tier 1 service providers are typically soft during the first quarter after a spending spree at the end of the year, which impacts their suppliers -- the largest equipment providers -- such as Nortel," said Steve Raab, Director IP Telephony Research at Dell'Oro Group. "Conversely, smaller tier 2 and 3 carriers have more stable spending patterns, which allowed emerging vendors, such as Veraz Networks and MetaSwitch, to gain share this quarter," Raab added.
About the Report
The Dell'Oro Group IP Telephony Carrier Quarterly Report offers complete, in-depth coverage of the market 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, please contact Nancy Shawver, call 650-622-9400 x223 or email Nancy@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 650-622-9400 or visit www.DellOro.com.
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