Thursday, May 25, 2006
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Q1 VoIP Sales Down, But Market Still Expanding Rapidly
Thursday, May 18, 2006 Written by VoIP Loop Staff
A recently published report says that IP telephony carrier market revenues fell 12 percent in the first quarter of this year. However, the report by Dell'Oro Group indicates that even after the seasonal softness in the first quarter, market sales were up 43 percent over the same period last year.
The study reports that in Q1, Alcatel, Cisco, and Nortel lost share to Sonus Networks and Veraz Networks. Siemens captured the largest revenue increase for the quarter, on strong sales to Latin America.
"Buying patterns of tier 1 service providers are typically soft during the first quarter after a spending spree at the end of the year, which impacts their suppliers -- the largest equipment providers -- such as Nortel," said Steve Raab, Director IP Telephony Research at Dell'Oro Group. "Conversely, smaller tier 2 and 3 carriers have more stable spending patterns, which allowed emerging vendors, such as Veraz Networks and MetaSwitch, to gain share this quarter," Raab added.
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