Next-Gen Voice Has a Future

WOBURN, Mass. -- North American next gen voice product expenditures will grow about 370%, from $533 million to $2.5 billion between 2003 and 2007, and European expenditures will grow 279%, from $380 million to $1.36 billion, according to Infonetics Research's latest market research study, Service Providers: Next Gen Voice, North America and Europe 2003. "Few service provider executives deny the future of packet-based voice," said Kevin Mitchell, Infonetics Research analyst and lead author of the study. "There are many strong drivers impelling service providers to deploy next gen voice equipment, particularly the ability to offer new and previously unavailable services. Still, there are lingering doubts and barriers, like product maturity and interoperability, and the fact that business models for these new services are not yet formed."Service provider capex is being cut or held flat, but expenditures are shifting from TDM to packet. The biggest spenders will be North American ILECs, IXCs, and MSOs and European incumbents. The notoriously long selection process of these providers combined with the relative immaturity of the next gen voice equipment market will hinder their spending in the near term.SAMPLE DATA

Infonetics Research Inc.