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Summary:

Vonage’s trials and tribulations not withstanding, the Voice over IP market is booming, and that bodes well for start-ups like Veraz Networks and BroadSoft, likely to go public later this year. Carriers, big and small, are spending liberally on VoIP equipment – $3.3 billion in 2006 […]

Vonage’s trials and tribulations not withstanding, the Voice over IP market is booming, and that bodes well for start-ups like Veraz Networks and BroadSoft, likely to go public later this year.

Carriers, big and small, are spending liberally on VoIP equipment – $3.3 billion in 2006 which is up 32% from 2005 – according to Campbell, California-based market research firm, Infonetics Research. They predict that the market for next generation voice and IMS will more than double by 2010 to $6.9 billion.

Infonetics’ principal analyst Stéphane Téral believes that the five year outlook for the market is good and it will help start-ups like BroadSoft and Veraz Networks who are likely to go public soon. Acme Packet was one of the more successful telecom-related offerings during 2006.

Here are some notable highlights from the report.

• Softswitches accounted for about $2.8 billion of the total $3.3 billion.

• Nortel had 20% of the total softswitch market, followed by Cisco and Siemens respectively.

• Media gateways ales went up 32% in 2006, while session border controller demand increased 66% in 2006.

• Acme Packet leads in the fast-growing SBC segment.

• BroadSoft leads in voice application servers

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  1. [...] post by Om Malik and software by Elliott [...]

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  2. Another Market Reseach/Sell Side alliance about to start? Some blamed the entire optical boom-bust cycle on RHK & “sell side”

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  3. I agree wholeheartedly with the conclusion that the VoIP market, which seemed to enter the “Trough of Despair” from the media’s perspective in ’06, is quite healthy. To the extent that there’s a market for Voice App Servers there’s no question in my mind that Broadsoft is the winner.

    We see very encouraging trends both in general awareness amongst businesses and acceptance amongst larger firms. But I do think quite a few cards need to be turned over yet in terms of who the real winners of the “boom” are, not only in terms of specific companies but also types of firms.

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