Voice Over LTE and Enterprise Voice Services Capital Spending to Rise

Voice Over LTE and Enterprise Voice Services Capital Spending to Rise

January 30 2012

Redwood City, Calif. – Dell”Oro Group, the trusted source for information about the networking and telecommunications industries, reported that service provider voice core equipment spending in 2016 is expected to hit $6.8B, a decline of 10% over 2011 revenues. Over the next five years, device revenue tied to circuit switching, or to converting traffic from circuit to VoIP, is expected to decline 8% CAGR, while software-based devices tied to VoIP-Only are expected to grow 19%. The faster-growing segment includes Voice Application Servers (VAS), Session Border Controllers (SBC) and IP Multimedia Subsystem (IMS) devices, which will benefit from upgrades related to broadband growth, enterprise use of SIP Trunking and cloud-based telephony, and wireless network upgrades to VoLTE.
 
"This year, we expect to see commercial launches of VoLTE services in North America. The underlying VoLTE infrastructure is unique from prior generations of wireless voice core equipment because it is software-based,” said Chris DePuy, Analyst at Dell”Oro Group. “As the large installed base of wireless users gradually transitions towards VoLTE, it should cause a shift in wireless voice spending towards VAS, SBC and IMS systems – a trend already underway in wireline networks,” finished DePuy.
 
The report also includes estimates for Voice over LTE (VoLTE) subscribers, Softswitch and Media Gateway equipment, and Enterprise SBCs.
 
 
The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the Carrier IP Telephony industry with tables covering manufacturers' revenue, average selling prices, license/channel shipments for softswitches, media gateways, and session border controllers. The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, contact Jessica Hsueh at +1.650.622.9400 x222 or via email at Jessica@DellOro.com.
 
 
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit http://www.delloro.com.