Softswitches, Class 5 Packet Switches, Application Servers Drive Carrier VoIP Market to $631.5M in 3Q05

Infonetics : Softswitches, Class 5 packet switches, and voice application servers grew strongly in 3Q05, helping push the quarterly worldwide next gen voice product revenue to $631.5 million, up 41% from 3Q04.Worldwide next gen voice product revenue totaled $1.73 billion in 2004, up 37% from 2003, and is forecast to reach $5.6 billion in 2008. All segments of the next gen voice market are up from a year ago except session border controllers, and all but media gateways and session border controllers are up from 2Q05. Softswitches are the core intelligence and service engine for next gen voice, and eventually all service providers will adopt them to offer voice services. The recent ramp in purchases points to the fact that providers are moving their next gen voice services closer to residential and business subscribers, which demands more softswitch intelligence to interact directly with individual subscriber call flows.”

3Q05 Highlights

• Worldwide softswitch revenue is up 14% from 2Q05 and 86% from 3Q04

• Worldwide Class 5 softswitch revenue is up 12% from 2Q05 and 172% from 3Q04

• Worldwide Class 5 packet switch revenue is up 34% from 2Q05 and 108% from 3Q04

• Siemens, Nortel, and Huawei lead in worldwide softswitch and Class 5 softswitch revenue market share

• North American residential/SOHO VoIP subscribers will reach 24.3 million in 2008; European subscribers will reach 27.8 million

Service Provider Next Gen Voice Equipment Publ 20051201