Voice over Broadband Services to Boost IP Telephony Carrier Market Over the Next Five Years

Slow migration of POTS Lines to NGN is Limiting Growth

Redwood City, Calif. – August 6, 2008 – Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, recently reported that worldwide IP Telephony Carrier equipment revenues are projected to grow by an average of 9 percent per year through 2012, driven mostly by the expansion of voice over broadband (VoBB) services. We forecast that VoBB subscribers will grow almost 40 percent per year over the next five years.

“As service providers deploy broadband connections in order to grow their revenues via data and video services, they are offering voice services that leverage that broadband connection,” said Greg Collins, Vice President at Dell’Oro Group. “These triple play (data, voice, and video) services are helping to drive voice over broadband services, which, in turn, are fueling the IP Telephony-Carrier market,” he added.

The massive installed base of circuit switched telephone lines represents a tremendous market opportunity for IP Telephony equipment, but many service providers struggle to find a business case for replacing their legacy, class-5 switches.

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, media gateways, and session border controllers. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, contact Emily Kendall at +1.650.622.9400 x223 or email Emily@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 enables 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.