Report: carrier VoIP equipment market down 12% in 3Q11

Market research firm Infonetics Research (Campbell, Calif., U.S.A.) on Wednesday released excerpts from its third quarter 2011 Service Provider VoIP Equipment and Subscribers market forecast report, which showed that the global carrier VoIP equipment market lost the 12% it gained in the second quarter of this year, with a 12% decline to $441 million. Overall, the year-over-year VoIP equipment market is down 15%, although the VoIP services market continues to grow.

The carrier VoIP equipment market, which includes such things as softswitches, session border controllers and trunk media gateways etc, has been struggling due to the move toward IMS, where fewer large operators are investing in softswitches and trunk gateways, says Diane Myers, directing analyst for VoIP and IMS at Infonetics Research.

"Seasonally the third quarter tends to be a weak one for the overall carrier VoIP equipment market, and 3Q11 was no exception," says Myers. "No vendor is immune to the challenges of delayed orders and shifts in technology choices,”

Despite the challenges, some companies such as GENBAND (Frisco, Texas, U.S.A.), Huawei (Shenzhen, P.R.C.), Metaswitch (London, England) and Sonus Networks (Westford, Mass., U.S.A.), stood out among the other vendors, according to Infonetics.  In the third quarter, Huawei gained on GENBAND to take the lead in the overall service provider VoIP equipment market

All market segments were down in 3Q11, but from the year-ago quarter, there is one bright spot: session border controllers (SBC), which are devices deployed in VoIP networks to control the way calls are initiated, conducted and terminated.  SBC revenue was up 13%.

“The SBC and voice application controller segments are on track to be up in 2011, reflecting the continued shift to all-IP networks," says Myers.

According to the report, the growth of VoIP subscribers in fixed and mobile networks, SIP trunking, and IP interconnectivity will continue to be important drivers for VoIP equipment. The standout region of the quarter is Central and Latin America, which posted a 14% increase in carrier VoIP equipment revenue in 3Q11 over 2Q11, driven by strong VoIP adoption, particularly in Brazil and Mexico, says Infonetics.

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