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Carrier IP Telephony Market Contracts Over 25 Percent in the First Quarter of 2009

Alcatel-Lucent, Huawei and Nokia Siemens Gain Share

Redwood City, Calif. – June 18, 2009 – A recent report published by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that the carrier IP telephony market contracted more than 25 percent in the first quarter of 2009 compared to the same quarter in 2008, due to a combination of seasonal weakness, reductions in capital spending prompted by the global economic recession, and the continued decline of fixed voice revenues and subscribers as consumers increasingly choose wireless as their sole means for voice communications.

“Although the overall carrier IP telephony market has been experiencing hard times, there are some bright spots that have been less affected by the weak economy,” said Greg Collins, Vice President at Dell’Oro Group. “Business voice-over-IP (VoIP) services, particularly SIP trunking, is an example. Another example is the enterprise session border controller (SBC) market that is seeing increased consolidation and investment as SIP trunking, combined with the need for businesses to integrate IP PBX systems from disparate vendors, creates an expanding market opportunity,” he added.

While nearly all vendors suffered revenue declines during the quarter, most vendors with a relatively high degree of exposure to markets outside of North America fared better than those with a high reliance on the market. According to the report, Alcatel-Lucent, Huawei and Nokia Siemens managed to gain share while Cisco, Nortel and Sonus were among the vendors whose share contracted on a quarter-over-quarter basis during the first three months of the year.

About the Report

The Dell’Oro Group Carrier IP Telephony Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, license/channel shipments for softswitches, media gateways, session border controllers and voice application servers. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x.223 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 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.

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