Service provider voice core equipment spending over the next five years is expected to remain approximately constant at nearly $7 billion per year, according to a new report from Dell’Oro Group. This compares with decline over the past five years. Growth segments such as IP Multimedia Subsystem (IMS) Core, Voice Application Servers and Session Border Controllers (SBC) are forecast to offset declines in mature product segments such as Softswitch and Media Gateway.
Dell’Oro expects the Session Border Controller market remain essentially unchanged despite volatile results from some vendors in this market.
“What has changed is that service providers are now offering commercial Voice over LTE systems in Korea and the United States. The underlying IMS architecture enables not just voice, but also messaging, file transfer, and video calls. As service providers deploy these services, they will be more effective in competing with Over-the-Top services that consumers purchase directly with their smartphones,” said Chris DePuy, Vice President at Dell’Oro Group. “We expect to see a significant increase in IMS-based commercial deployments over the next year,” concluded DePuy.
