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Carrier VoIP market shrinks

For the first time ever, service provider spending on voice-over-IP (VoIP) technology decreased for the fourth quarter of 2008, according to Infonetics Research.

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Infonetics tracks sales of service provider VoIP equipment, including gear such as softswitches, media gateways and session border controllers. While the global economic downturn certainly played a part, the near-completion of large VoIP deployments and shifting strategic priorities also contributed to the drop, said Diane Myers, analyst with Infonetics. Overall, the carrier VoIP equipment market dropped by 6% in 2008 , following years of double-digit growth.

Other key data points include:

  • Fourth-quarter sales were actually up 4%.
  • Residential and small-office/home-office VoIP subscribers continued to grow, reaching 107 million in 2008. The bulk of deployments are in Europe and Asia-Pacific.
  • Telecom service provider projects were either slow or completed; cable companies are gearing up for PacketCable 2.0 VoIP deployments, but are slowed by the economy.

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© 2012 Penton Media Inc.

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