Infonetics: VOIP Market Up 10%

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

Infonetics Research Inc.