China Drives VoIP Demand

The research analyst Infotech has said that China is a driving force in the VoIP market by increasing supply, which in turn lowers prices.  

The directing analyst for VoIP at Infonetics, Diane Myers, stated: "The number-one story in 2010 for the carrier VoIP  market is China, where conditions are driving volumes up and pushing prices down.

"Large network transformation projects are underway in China, so demand for equipment is very strong. But at the same time vendors are willing to push the pricing limits to get strategic accounts."

Looking at the third quarter of 2010, the report found that every product category except media servers was impacted by pricing pressures. Therefore even though shipments were up for most segments, total worldwide revenue was impacted negatively.

Infotech believes that solid VoIP growth will only come about through a migration to all-IP networks, such as Session Border Controllers.

Furthermore the Asia Pacific region is the only region which is expected to post revenue growth in 2010 for service provider VoIP equipment.

Other points of interest:

 - The total service provider VoIP equipment market, including trunk media gateways and voice application servers, decreased by nine per cent from the second quarter to the third quarter 2010.

- Although revenue is down, shipments for almost all segments in the market are up sequentially

 - In the third quarter Genband leads the combined carrier VoIP and IMS equipment market for worldwide revenue

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