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Strong quarter for IMS equipment; steep decline for
carrier VoIP equipment market


Campbell, CALIFORNIA, June 8, 2009—Communications market research firm Infonetics Research recently released the first quarter (1Q09) editions of its Service Provider VoIP Equipment and Subscribers and IMS Equipment and Subscribers reports. Highlights follow.

“The service provider VoIP equipment market had a rough first quarter across all product segments and regions, declining 29% sequentially in worldwide revenue. The market pause for VoIP equipment is being exacerbated by the global economic downturn as service providers put VoIP equipment purchases on hold. We are beginning to see a noticeable shift in spending from stand-alone VoIP networks to IMS deployments. While the core IMS equipment segments, CSCF and HSS, are still small compared to the service provider VoIP market, deployments remain strong in EMEA and Asia Pacific. The core IMS equipment market had an impressive quarter with $63.7 million in revenue.”

Diane Myers, Directing Analyst, Service Provider VoIP and IMS, Infonetics Research


  • Most large Tier 1 service providers are coming to the end of major VoIP projects, and given current access line declines and fixed-to-wireless substitutions, most ILECs and PTTs have put PSTN migration plans on hold and will reassess after the economic storm has passed
  • While declines in the service provider VoIP market are expected for the rest of 2009, there will be pockets of growth in certain areas, driven by large carriers creating a roller coaster ride for vendors
  • No product segment or region was immune to declines in the service provider VoIP equipment market, which experienced the sharpest quarterly decline ever
    • Worldwide revenue totaled $600.4 million, down 29% sequentially and down 33% from the first quarter of 2008
  • The media server segment proved a small bright spot in the quarter, with worldwide revenue down “only” 7% sequentially but up 19% year over year
    • North American service providers and call center providers continue to drive the media server market as the largest segment
  • GENBAND, Veraz, Acme Packet, and Radisys were stand-outs in the quarter with notable revenue increases in their respective product areas


  • Worldwide sales of IMS (IP multimedia subsystem) equipment, including HSS (home subscriber servers), CSCF servers, and voice application servers, are forecast to jump 74% in 2009 over 2008
  • Infonetics’ IMS Deployment Tracker shows Ericsson, Alcatel-Lucent, Nokia Siemens, and Huawei leading the way with core IMS equipment
  • The EMEA region (Europe, Middle East, Africa) is expected to continue to lead the charge in terms of number of IMS deployments through 2009
  • Led by NTT and SK Telecom, Asia Pacific has the single largest IMS deployments and will take the lead in IMS equipment spending in 2010 as the China operators ramp their IMS networks
  • While IMS deployments continue to grow in all regions, significant challenges remain, including interoperability issues, complicated deployments, and steep price competition


Infonetics’ quarterly service provider VoIP report tracks Acme Packet, Alcatel-Lucent, AudioCodes, BroadSoft, Dialogic, Cisco, Comverse (NetCentrex), Ericsson, GENBAND, Huawei, Italtel, MERA, MetaSwitch, Movius, Nokia Siemens, Nortel, RadiSys, Sonus, , Thomson Cirpack, UTStarcom, Veraz, Verso, Xener, and others. The VoIP report provides worldwide and regional market share, market size, forecasts through 2013, and analysis for VoIP subscribers and media processing and call control carrier VoIP equipment, including high-, mid-, and low-density trunk media gateways, SBCs, media servers, softswitches, and voice application servers.

Infonetics’ quarterly IMS report provides worldwide and regional market size, forecasts through 2013, and analysis of core IMS equipment (HSS and CSCF servers, fixed and mobile network splits, IMS VoIP application servers, and IMS-based subscribers. The report includes an IMS Deployment Tracker that tracks carrier deployments by vendor, including Acme Packet, Alcatel-Lucent, Blueslice, BroadSoft, Ericsson, Huawei, NEC, Nokia Siemens, and Samsung.


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Infonetics Research ( is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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"While declines in the service provider VoIP market are expected for the rest of 2009, there will be pockets of growth in certain areas."

Diane Myers
Directing Analyst, Infonetics Research
Service Provider VoIP and IMS