Media Gateway, Softswitch Market to Reach $8.4 Billion in 2010

In-Stat:With carrier networks moving towards an all-IP environment, the global market for media gateways and Class 4 and 5 softswitches will jump from $2.7 billion in 2005 to $8.4 billion in 2010. One of the advantages of media gateways and softswitches is that they cost less than traditional equipment, . It also creates carrier infrastructure to support future services. As interest in Voice-over-IP (VoIP) grows for both end-users and carriers, the migration of circuit switch networking to IP has increased,. The drivers for this migration include not only cost savings for subscribers and network operators, but also the promise of new applications that will enrich the communication experience.

• Chinese equipment vendor, Huawei, garnered the largest market share for media gateway port shipments and Class 4 softswitch licenses for 2005; however, over half of those shipments were to domestic markets.

• Nortel has the number one market share for both categories when not factoring in Huawei’s domestic shipments.

• In-Stat expects there will be continued market consolidation among equipment vendors.

The China Anomaly: 2005 Media Gateway and Softswitch Market Publ 20060606