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Softswitch market to reach $12.6B in 2012, reports Frost & Sullivan

Posted: 25 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:media gateway market? softswitch markets? Frost & Sullivan?

The global media gateway and softswitch market earned revenues of $2.50 billion in 2005 and is estimated to reach $12.60 billion in 2012, according to a recent report from Frost & Sullivan.

According to Shirley Hunt, a strategic analyst at Frost & Sullivan, the need for lower-cost services and convergence with other technologies is driving the VoIP market. "Service providers are introducing differentiated multimedia services to improve their competitive positioning and generate revenues, where IP infrastructure vendors are providing the equipment required to realize these services," Hunt said.

As carriers and service providers are planning the long-term upgrade of their circuit-based voice systems to VoIP, vendors of carrier IP equipment are identifying new opportunities for growth, said the global growth consulting company. Media gateway and softswitch vendors provide the equipment needed for moving carrier networks to the next generation of applications and technologies.

"Carriers and service providers must upgrade the voice network in stages, minimizing customer disruption," noted Hunt. "Security and interoperability testing must happen before the upgrade to maintain a smooth transition to the new technologies, but this challenge slows the penetration of VoIP equipment into existing carrier networks."

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