Wednesday, March 11, 2009

Dell'Oro: Carrier IP Telephony Market Loses 20% of Value in Q4 2008

The carrier IP telephony market contracted 20 percent in the fourth quarter of 2008 compared to the same quarter in 2007, due in large part to significantly lower sales in developing regions, according to a recent report published by Dell'Oro Group.

Despite continued financial struggles and corporate restructurings, Nortel regained the market's top vendor position based on revenue in the fourth quarter with 13 percent market share. The report indicates that Huawei, which has a strong presence in developing regions, lost market share in the fourth quarter; however, its market share was up for the full-year 2008.

"Developing regions have been a key growth driver for the carrier IP telephony market, as new construction and rising incomes have driven investments in fixed-line telephony services," said Greg Collins, Vice President at Dell'Oro Group. "While we saw a market decline coming from developing regions in the fourth quarter of 2008, it is unclear exactly to what extent the decline in consumer demand in the U.S. will affect the future economies of developing regions, which have relied largely on exports to the U.S. for their growth," he added.

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