Tuesday, February 3, 2009

Dell'Oro: Fixed-line Carrier IP Telephony Market Forecast to Rebound in 2010

Worldwide carrier IP telephony equipment revenues are forecasted to rebound in 2010, after expected declines in 2008 and 2009, according to a new report from Dell'Oro Group. The market is projected to grow in single-digits from 2010 through 2013.

According to the Dell'Oro Group report, voice services continue to transition away from fixed connections to mobile or wireless connections, reducing the market for associated fixed-line equipment. The number of fixed telephony lines peaked in 2006 at nearly 1.3 billion and continues to fall. At the same time, the mobile subscriber base has been growing by more than one million subscribers per day.

"The market for carrier IP telephony equipment began to be negatively affected by the global economic slowdown in mid-2008," said Greg Collins, Vice President at Dell'Oro Group."Service providers, especially in developed regions, began reducing their capital spending to better align with their lowered growth expectations and began to focus their capital spending on revenue-generating projects, like IPTV and fiber-to-the-home (FTTH), at the expense of modernizing their considerable base of equipment for customers of plain-old telephone service (POTS). We expect that market for fixed-line carrier IP Telephony equipment to rebound as the economy improves, network modernization rebounds and the market increasingly transitions to voice-over-broadband," Collins added.


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