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30th August 2004 - The market for media gateways, aided
by increasing popularity of Voice Over Internet Protocol
(VoIP) service, will grow by nearly 30% per year through
2008, according to In-Stat/MDR (http://www.instat.com).
The market was hit by the collapse of CLECs, the severe
downturn in carrier capital expenditures (CapEx), and
the resulting fallout. However, VoIP has endured because
the benefits are too compelling, and those advantages
have benefited, and will continue to benefit, the media
gateway market.
In-Stat/MDR has also found that:
- Increased media gateway shipments and deployments
in cable and wireless networks will drive total shipments
higher over the next several years.
- As with several markets, many companies optimistically
entered the media gateway market during its early
stages. The ensuing telecom meltdown led several companies
to exit the business and others to form partnerships
or be acquired to survive. Partnerships and acquisitions
have continued even as this market has been revived.
- Overall, high-density ports dominated total media
gateway shipments in 2003 with 60.0% of the total
ports shipped.
- An increasing mix of low-density gateways through
2008 will hold the Average Selling Price of media
gateways relatively stable from year to year even
though prices for each density type are expected to
decline slightly.
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