Carrier IP Telephony Gear Market to Rebound in 2010

The total market for carrier IP telephony gear – softswitches, media gateways and session border controllers -- is expected to continue to contract in 2009 as service providers defer as much capital spending as possible outside of strategic, long-term investments until 2010 or even later, according to research from Dell’Oro Group. Despite this contraction, the market is forecast to grow over the next five years and approach $4 billion by 2013.

“While the market is in the midst of a large contraction, we forecast that service providers will resume network modernization projects in 2010 as the economy stabilizes,” said Greg Collins, vice president at Dell’Oro Group. “Beyond 2010, we expect market growth to be gradual, mirroring the migration of circuit-switched POTS subscribers to voice-over-broadband services.”

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