Class 5 market is 10 times the size of the class 4 market according
to what I read in some old newsletters on bigredanalyst site.
Verizon was used as an example saying that they will spend $2 - $3
billion on their Class 5 softswitch upgrade versus $250 - $300
million on their class 4 upgrade.
He projected that SONS could generate 1 billion or more in annual
revs in 3 - 5 years just from the class 4 market alone. The class 4
market is still only 12% penetrated. Still another 88% to go.
Think of future revs in the 10 times larger class 5 market from
SBC/AT&T, Quest, AOL, Time Warner Telecom, XO, NuVox, Softbank BB,
NTT, Fusion, KDDI, Marcatel, and we're just in the very early
stages. SONS indicated that they believe they are the early class 5
market share leader based on their own survey.
Now factor in that wireless will be larger than both the class 5 and
class 4 markets. As we know SONS is off to a good start with
Cingular, Motorola, and Samsung in the works.
What will SONS revs look like once wireless and class 5 really start
kicking in on top of an expanding class 4 market?
- from yhoo board Msg: 438971 |
