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| 16th March 2004 - With major service
providers around the world having already initiated,
or announced plans to deliver local and/or long
distance voice services, based on softswitch technology,
to business and/or residential customers, the total
softswitch market in 2003 grew by 42.4%. High-tech
market research firm, In-Stat/MDR expects this market
to maintain high growth rates over the next several
years as major service providers worldwide expand
their VoIP networks. As a result, the softswitch
market is expected to experience a compound annual
growth rate (CAGR) of 64.6%, between 2003 and 2008,
resulting in revenues of $2.05 billion. |
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Softswitch-based networks enable packetized voice to
travel along data networks (i.e., Public Internet and
Virtual Private Networks), resulting in cost savings
and the ability to deliver new services. Service providers
have been evaluating this technology for the last couple
of years and have begun to deploy these new voice networks
to capture new customers and to retain existing customers
by offering them enhanced features.
In-Stat/MDR has also found that:
- While cable and wireless softswitches will continue
to make up an increasing percentage of total softswitch
shipments, wireline softswitches will continue to
account for the majority of the revenue each year
through 2008.
- Nortel Networks shipped the most Class 4 and Class
5 ports under softswitch control in 2003.
- In 2003, almost ¾ of softswitch license revenues
came from Class 4 applications while the remaining
came from Class 5 applications.
- North America accounted for the largest percentage
of worldwide softswitch revenues in 2003. Large purchases
by MCI and Sprint helped softswitch sales in this
region.
This Market Alert is drawn from the In-Stat/MDR report,
"Softswitch
Architectures Evolve as VoIP Goes Mainstream",
which analyzes the different markets for softswitches,
including wireline, wireless and cable. It also looks
at a new edge product - session border controllers -
that augment, but, in some cases, compete with softswitches.
Market shares and segmentations are provided for 2003.
Five-year forecasts are segmented by market, geography
and application.
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