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SBC Market Sees Growth in Q3, VoLTE Rolls Out Commercially in North America, Asia

November 13, 2012

Dell' (News - Alert)Oro Group released its most recent "Carrier IP Telephony Quarterly Report" Monday, which offers an in-depth look at the market, including individual manufacturer revenue, shipments and average selling prices for both the wireless and wireline core voice markets. According to the report, the session border controller (SBC) market saw 11 percent revenue growth during the third quarter of 2012, compared to the same period in 2011.

Also during the third quarter, voice over long term evolution (VoLTE) services started being offered commercially by providers in North America and Asia, signaling a new phase in voice networking projects.

"Five quarters ago, Dell'Oro Group warned of impending competitive changes in the SBC industry, and selling prices dropped 28 percent by early 2012 versus mid-2011. While pricing has not reached pre-warning levels, they are now on the rise," said Dell'Oro Group analyst Chris DePuy.

Adding, "In addition, VoLTE services are now commercial in two continents, marking the beginning of a powerful trend that should cause a return to growth in SBCs, and continued growth in technologies such as IMS and VoLTE Applications Servers."

Overall, states the report, the carrier IP telephony market , including devices used to serve both circuit switched subscribers and VoIP subscribers, reached $1.4 billion in revenue.

The Dell'Oro Group is considered a trusted source for market information about the networking and telecommunications industries. In September, the research firm released its SAN quarterly report, which stated that the fiber channel SAN market recorded sales of $1.3 billion in the first quarter of 2012. It went on to add that, as more users are opting for products with greater functionality, vendors experienced higher average selling prices during the period.

In August, Dell'Oro Group released its mobile backhaul five-year forecast, which states that the mobile backhaul market, which includes transport as well as routers and switches, is forecasted to reach $9 billion by 2016.

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Edited by Brooke Neuman

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