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Report: MSOs may delay PacketCable 2.0 deployments for VoIP

Mon, 11/24/2008 - 7:05am
Traci Patterson

Cable MSOs are likely to postpone PacketCable 2.0 deployments for residential VoIP service due to the struggling economy, according to a new report from .

Large RBOCs and ILECs are also scaling back on their respective VoIP equipment purchases, bringing the worldwide service provider VoIP market down 8 percent sequentially, to $816 million, in the third quarter of 2008.

Service Provider VoIP and IMS Equipment Sales

The overall market weakness was led by a steep decline in the high-density media gateway segment, as well as a dip in the softswitch segment, according to “Service Provider VoIP and IMS Equipment and Subscribers.

“Third quarter service provider VoIP equipment sales confirmed what we started seeing in the previous quarter: In North America, carriers were already slowing their VoIP investments after completing major projects; in Western Europe and some parts of Asia, such as South Korea, inventories were already high,” said Stéphane Téral, principal analyst for VoIP and IMS at Infonetics Research. “The quarter also reflects the global economic downturn, which is turning the expected VoIP deployment dip into a drop. New VoIP projects will be postponed, at best, and some may be cancelled altogether, as more consumers ditch their fixed lines, thus cutting the need for wireline upgrades. As such, we are predicting a two-year pause in the overall carrier VoIP space, with a pick-up expected in 2011.”

The report also concluded that:

  • Year-over-year, softswitches, SBCs and media servers were up.
  • Cisco shook up the worldwide trunk media gateway market with a 37 percent sequential jump in revenue, propelling the company to the No. 1 spot, followed by Genband and Huawei.
  • Nortel maintained its No. 1 position in the worldwide softswitch market.
  • Given how bad the current economic turmoil is, the five-year outlook for service provider’s next-generation voice services is “decent.”
  • Voice-over-broadband (VoBB) will continue to be the big driver across the board.

More Broadband Direct:

• Comcast ups speed of Economy tier

• Verizon completes digital TV upgrade

• AT&T launches U-verse services in Toledo, Charlotte

• Prez of Sprint CDMA division departs

• Suddenlink taps Synacor for enhanced customer portal

• Rentrak, Dish Network hook up on audience measurement

• BigBand Networks ready to take SDV overseas

• Cloakware intros security software to N. Amer. cable ops, CA vendors

• NDS loses co-founder; makes sales appointments

• DVR usage making big changes in television viewing

• Report: MSOs may delay PacketCable 2.0 deployments for VoIP

• Broadband Briefs for 11/24/08

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