Infonetics: VOIP Market Up 10%

Carrier VOIP equipment market is up 10% from 1Q04, up 21% from a year ago, according to Infonetics Research

August 24, 2004

1 Min Read

BOSTON -- Worldwide next gen voice product revenue totaled $389 million in 2Q04, up 10% from 1Q04 and up 21% year-over-year, according to Infonetics Research's quarterly market share and forecast service, Next Gen Voice Products. Annual revenue is projected to grow from $1.3 billion in 2003 to $4.8 million in 2007.

"Starting with this report, we are tracking softswitch revenue by Class 4 and Class 5 applications," said Infonetics Research's Kevin Mitchell, directing analyst and author of the report. "While license shipments and revenue continue to favor packet tandem applications, this will change in 2005 as the applications achieve parity and then swap positions, with Class 5 applications representing the majority of revenue starting in 2006. New IP multimedia services and Class 5 applications represent the lion's share of the long term revenue opportunity in this market."

2Q04 Market Highlights

  • Worldwide media gateway revenue grew 22% from 1Q04, with the strongest growth coming from RAC VoIP gateways; the only segment to decline was ATM switch gateways

  • Worldwide session border controller revenue grew 24% from 1Q04, and 73% from 2Q03

  • Worldwide softswitch revenue split was 55% Class 4 and 45% Class 5

Infonetics Research Inc.

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