VoIP revenues down but outlook is positive

Jan Harris

June 19, 2007

Although revenues for VoIP equipment suppliers fell 8 per cent in the first quarter of 2007, this is a seasonal variation and the outlook for the industry remains positive according to a report from Infonetics Research.

The 8% dip in revenue was in comparison to the previous four months, which were very robust, so a slowdown was to be expected according to the company.

Although revenue fell 24% for media gateways, some equipment revenue showed an increase during the quarter – there was a 10% increase in revenue for session border controllers (SBCs) and a 9% increase for softswitches.

The general trend for VoIP equipment is one of increasing year-on-year revenues. Growth currently stands at 14% with more companies taking up internet-based communications services.

Future growth is expected to focus on next-generation voice and IMS-based equipment that will provide enhanced voice quality and improved connection reliability.


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