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Growth in Next Generation Voice Equipment

Worldwide sales of service provider next generation voice equipment are up 5 percent in 3Q07 from 2Q07 to $956.4 million, according to the latest study by Infonetics Research.

Year-over-year, the next generation voice market is up 15 percent, the report shows.

The third quarter was marked by strong gains in softswitch, session border controller (SBC), and media server sales, driven by increasing demand for voice over broadband. The SBC segment's 1-year growth rate (3Q06 to 3Q07) is in the very high double digits.

"On the down side, we saw disappointing trunk media gateway deployments across categories, particularly at large North American cable MSOs," said Infonetics Research principal analyst Stephane Teral.

Other Infonetics report highlights include:

- The service provider next gen voice equipment market is forecast to more than double between 2006 and 2010, when it will reach $6.9 billion worldwide.

- The number of worldwide residential and SOHO VoIP subscribers will grow to nearly 172 million in 2010, led by the Asia Pacific region.

- Worldwide media gateway manufacturer revenue is down 4 percent in 3Q07 over 2Q07.

- Nortel takes back the lead in worldwide softswitch revenue market share, pushing Nokia Siemens to 2nd; Huawei remains in 3rd.

- It's a tight race for the lead in the trunk media gateway market, with Sonus edging back into the lead, followed closely by Nortel and Cisco.

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