SOURCE: Infonetics Research

November 28, 2006 17:42 ET

Carrier and enterprise VoIP markets up in 3Q06

CAMPBELL, CA -- (MARKET WIRE) -- November 28, 2006 -- Two reports published by market research firm Infonetics Research show gains in the carrier VoIP/IMS market and the enterprise telephony market in the third quarter of 2006.

According to Service Provider Next Gen Voice and IMS Equipment, worldwide service provider next gen voice and IMS equipment sales are up 4% sequentially and 26% year-over-year. The market is expected to more than double between 2005 and 2009, from $2.5 billion to $5.8 billion.

"The service provider next gen voice market is robust and healthy, with none of the extravagance that led to the telecom crash of 2000-2002, pointing to a sustainable investment cycle," said Infonetics Research principal analyst Stéphane Téral. "All segments but softswitches showed gains in the third quarter."

"Some notable movers and shakers this quarter include Nortel, which recaptured its leadership position in the $2.8 billion media gateway and softswitch market; Cisco, which is making serious inroads into the media gateway market and is now second in the media gateway/softswitch market; and Sonus, which has a strong book of tier 1 customers and is considered by many the go-to manufacturer for pure-play," Téral added.

Carrier VoIP/IMS Market Highlights

   --  The media gateway segment is up 11% quarter-over-quarter and 45%
       year-over-year
   --  The session border controller segment grew 8% QoQ and up 102% YoY
   --  As more traffic becomes IP, softswitches will increase their share
       at the expense of media gateways
   --  The number of worldwide residential and SOHO VoIP subscribers
       nearly doubles between 2005 to 2006 to over 47 million
   --  Revenue leaderboard:
          o  Cisco had another big quarter for trunk media gateway sales,
             up 22% to maintain the lead they grabbed from Sonus the
             previous quarter
          o  Nortel leads in worldwide softswitches
          o  Acme Packet leads in the fast-growing session border
             controller (SBC) segment
          o  RadiSys is the worldwide leader for media servers
          o  Broadsoft leads in voice application servers
Infonetics' Enterprise Telephony report shows worldwide PBX/KTS sales grew 5% sequentially to $2.3 billion, with annual sales expected to pass the $10 billion mark in 2008.

The IP PBX segment, which includes hybrid and pure IP PBX, continues to post strong growth, with worldwide sales up 8% to $1.9 billion in the third quarter, led by the pure IP segment. IP PBX sales are forecast to continue growing in the double digits through at least 2009, when worldwide sales will reach $11.1 billion.

"The third quarter turned out to be a good one for most vendors, and a great quarter for Avaya, Siemens, and NEC. The third calendar quarter is the end of the fiscal year for Avaya and Siemens, which helped both turn in a strong performance. NEC has a high exposure to the Asia Pacific region, and benefited from a seasonally strong quarter there. But even vendors without those factors on their side turned in a decent performance, including Cisco, who had a blockbuster quarter last quarter and maintained its lead in the North American IP PBX market," said Infonetics Research analyst Matthias Machowinski.

Enterprise Telephony Market Highlights

   --  The top IP PBX vendors in 3Q06 are Siemens, Avaya, Cisco, Nortel,
       and Alcatel (in that order), with notable market share differences
       in various regions:
          o  Cisco, Avaya, Nortel, and NEC lead in North America
          o  Siemens is in first place in EMEA, followed by Alcatel
          o  In Asia Pacific, NEC shoots to first place, followed by Avaya
   --  IP deskphones accounted for 97% of all 3Q06 IP phones shipped, with
       the remainder coming from softphones
Download sample data from the reports at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contacts:

    Stéphane Téral
    Principal Analyst, Service Provider VoIP, IMS & FMC
    Infonetics Research
    (408) 583-3371
    Email Contact

    Matthias Machowinski
    Directing Analyst, Enterprise Voice & Data
    Infonetics Research
    (781) 933-9868
    Email Contact