IP carrier spending to tick up again next year

Not surprisingly, carrier spending on wireline IP technology contracted in 2009, but spending on IP and IP multimedia subsystem platforms is expected to start rising again next year, according to a recent Dell‘Oro Group forecast.

Even as IP networks and services proliferate, service providers hit by the economic downturn have deferred many long-term IP investments until 2010 or later, said Greg Collins, vice president of Dell‘Oro Group. Despite the near-term contraction, the market for IP core gear is slated to grow over the next five years and reach $4 billion in 2013.

Growth in core fixed-line IP gear will be slow but steady, mirroring the steady migration away from circuit-switched POTS services to voice-over-broadband services, Collins said.

Also seeing steady growth once spending upticks again is IMS equipment sales. Dell‘Oro expects a 44% increase per year over the next five years in core IMS equipment — including CSCF and HSS platforms — with mobile-related IMS gear slated to grow quickly at more than 50% in 2010 and even more rapidly after that as long-term evolution spending accelerates.

Carrier IP comeback

The market for carrier IP equipment has seen its ups and downs; growth is slated to kick in again next year, with session border controllers seeing the highest growth rate, albeit on a smaller base than products such as softswitches and media gateways.