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July 30, 2014

The Next Five Years Will See Session Border Controller, IMS Core and Voice Application Server Spending Nearly Doubling

The Dell’ (News - Alert)Oro Group’s goal is to provide timely, reliable data concerning networking, IT and the telecommunications industries with in-depth, objective research and analysis. In addition to market research, Dell’Oro also provides quarterly reports and five year forecasts. This week, we have the latest five year report entitled “Carrier IP Telephony 5-Year Forecast Report.”

The purpose of this forecast is to attempt to find answers to questions such as:

  • How will IMS, SBC and VAS equipment affect the market for fixed and mobile core equipment?
  • What happens to capital spending as Voice over LTE (News - Alert) (VoLTE) services emerge?
  • How is vendor consolidation impacting the market?
  • How fast is the market for wireless voice core equipment transitioning away from circuit-based MSCs, media gateways and soft switches?
  • How are high-growth services like SIP Trunking and IP Centrex/Outsourced Telephony affecting the equipment market, and how are these impacted by wireless network activity?

The results of the report show that that spending on emerging voice-related systems such as Session Border Controllers (SBCs), IP Multimedia Subsystem (News - Alert) (IMS) Core and Voice Applications Servers (VASs) will significantly grow over the next five years. According to the five year study, we can expect to see a growth of over 90 percent.

A session border controller (SBC) is a device regularly deployed in Voice over Internet Protocol (VoIP) networks to exert control over the signaling and usually also the media streams involved in setting up, conducting, and tearing down telephone calls or other interactive media communications. The IP Multimedia Subsystem or IP Multimedia Core Network Subsystem (IMS) is an architectural framework for delivering IP multimedia services.Voice Applications Servers are just that.

The fact that service providers are in a transitional phase where they are attempting to replace their existing legacy voice networks with VoIP continues to make this market very active. Service providers will be able to offer new services, many of which will be based on IMS equipment, through VoIP services.

The forecast report includes an analysis and estimate of the following:

  • Network Functions Virtualization (NFV) licenses for the SBC
  • IMS Core and VAS markets. 
  • Voice over LTE (VoLTE) subscribers
  • IMS Core equipment
  • Softswitch and Media Gateway (News - Alert) equipment
  • Enterprise Session Border Controllers

Chris DePuy, vice president at Dell'Oro Group, offered the following comments, "New services such as Voice over LTE (VoLTE) and Voice over Wi-Fi are expected to drive robust demand for SBCs, IMS Core and Voice Application Servers in the coming years. These newer systems are expected to replace the existing voice systems that have been used for over a decade.  After several years of robust growth of these newer systems, their revenues are now overtaking older system revenue, resulting in our expectation that the overall voice market will remain stable in the coming years."


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