SOURCE: Infonetics Research

March 03, 2009 16:54 ET

Infonetics Research: Carrier VoIP equipment down first time ever in 2008; Nortel, Sonus, Italtel post strong 4Q

CAMPBELL, CA--(Marketwire - March 3, 2009) - Communications market research firm Infonetics Research recently released the fourth quarter (4Q08) edition of its Service Provider VoIP Equipment and Subscribers report. Highlights from the market research report follow.

"The fourth quarter of 2008 confirmed what we started seeing in the previous two quarters in North America, with signs in Western Europe and some parts of Asia as well: the market for carrier VoIP equipment has stalled due to large deployments nearing completion and shifting strategic priorities. The global economic downturn will likely exacerbate the drop in VoIP equipment sales."

Diane Myers, Directing Analyst, Service Provider VoIP and IMS, Infonetics Research


--  After strong, double-digit annual revenue growth in the worldwide
    carrier VoIP equipment market since 2002, the market declined for the first
    time ever in 2008, dropping 6%
--  For the quarter, the worldwide market is up 4% to $849 million in
    4Q08, showing much weaker growth than is typical for the fourth quarter
--  Quarterly growth was driven by modest gains in media server,
    softswitch, and voice application server sales
--  Trunk media gateway and session border controller (SBC) sales were
    down for the quarter
--  Large RBOCs and ILECs are putting the brakes on VoIP as major projects
    are (or have been) completed
--  The economic downturn is forcing operators to move their capital
    expenditures (capex) to other strategic priorities
--  Cable MSOs are gearing up for PacketCable 2.0 residential VoIP
    deployments, but may postpone significant spending until 2010 given the
    current economic conditions
--  Meanwhile, the number of residential and SOHO VoIP subscribers
    worldwide continues to increase at a steady clip, topping 107 million in
    2008, driven mostly by EMEA and Asia Pacific
--  Nortel was the big winner for the quarter, increasing softswitch and
    trunk media gateway revenue and gaining share in both categories
--  Italtel posted triple-digit increases in Class 5 softswitch sales in
    the EMEA region (Europe, Middle East, Africa) in 4Q08, as softswitch prices
    held steady
--  Sonus increased its trunk media gateway revenue 45% in 4Q08 from 3Q08


Infonetics' quarterly service provider VoIP report tracks Acme Packet, Alcatel-Lucent, AudioCodes, BroadSoft, Dialogic, Cisco, Comverse (NetCentrex), Ericsson, GENBAND, Huawei, Italtel, MERA, MetaSwitch, Movius, Nokia Siemens, Nortel, RadiSys Convedia, Sonus, Tekelec, Thomson Cirpack, UTStarcom, Veraz, Verso, Xener, and others.

The service provider VoIP report provides worldwide and regional market share, market size, forecasts through 2013, and analysis for VoIP subscribers and media processing and call control carrier VoIP equipment, including high-, mid-, and low-density trunk media gateways, SBCs, media servers, class 4 and class 5 softswitches, and voice application servers. IMS equipment is now tracked separately in Infonetics' IMS Equipment and Subscribers report.


To download this report if your organization has purchased it, or to download sample data from the report, log on to Infonetics' portal from

For sales, please contact Larry Howard, vice president, at or +1 (408) 583-3335.

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Contact Information

  • Lead Analyst:
    Diane Myers
    Directing Analyst, Service Provider VoIP and IMS
    Infonetics Research
    Email Contact
    +1 408.583.3391