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Planning Ahead for IP Phone Service

This could be the year that determines the shape of the carrier IP telephony market for a decade to come. A couple of recent research reports make clear that the industry has started to spend significant sums on carrier IP voice equipment. Because such reports focus on equipment sales rather than service revenue, they don’t just measure what the market for carrier VoIP services is like right now, which is not all that impressive. They also indicate what the industry, by shelling out cash for gear it thinks it will need, is betting the market will be like in the future, which looks quite a bit more impressive. And service providers who fall behind may have a hard time catching up.

One of the reports, by Infonetics Research, says that worldwide sales of next-generation voice products reached $1.71 billion in 2004, a 36% increase over 2003. Infonetics projects equipment revenues to reach $5.9 billion in 2008, for a CAGR of 36% over the five years. A report by Dell’Oro Group, which tracks slightly different categories of carrier IP telephony gear, measured a 26% growth in 2004, to $1.6 billion.

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Everyone is realizing that if they don’t also move, they’re going to be left behind in the not-too-distant future.

By: Robert Poe
America’s Network Enews

Full Story: http://www.americasnetwork.com/americasnetwork/article/articleDetail.jsp?id=149081

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