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VoIP Subscriber Rush Spurs Equipment Boom
September 13, 2005 |Estimated reading time: 2 minutes
The ranks of residential Voice over Internet Protocol (VoIP) users are expected to explode during the next few years, causing market revenue for wireline VOIP equipment to more than triple between 2004 and 2010, iSuppli Corp. predicts.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The number of residential VoIP subscribers worldwide will rise to 197.2 million in 2010, up more than 40-fold from 4.8 million in 2004. This will help drive worldwide wireline VoIP equipment revenue to $24.5 billion in 2010, more than three times the $8.04 billion in sales in 2004. In 2005, VoIP equipment revenue will rise to $12.9 billion, up 60 percent from 2004.
The VoIP equipment market consists of products targeting the residential, enterprise
and other segments. These products range from enterprise-oriented gear-like IP-PBX common equipment, IP-phones and enterprise media gateways-to pieces of apparatus that support residential VoIP-including cable modems, xDSL voice-enabled gateways and media gateways and soft switches.
With the rapid rise in consumer subscribers, the residential segment will be the fastest-growing portion of the entire VoIP equipment market, with revenue expanding to $10.6 billion in 2010, up 650 percent from $1.4 billion in 2004, iSuppli predicts.
"Worldwide, there are more than 1 billion wireline subscribers generating in excess of $450 billion in voice revenues annually," noted Steve Rago, principal analyst, networking and optical communications for iSuppli. "The goal of every incumbent telephone company is to hold on to its share of the voice revenue stream, while the focus of all cellular companies, cable operators and virtual voice providers is to grab a major share of this revenue stream for themselves. The battle for the voice dollar will be a major driver of the growth of residential VoIP subscribers."
iSuppli predicts <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Japan and the U.S./Canada region will continue to dominate the residential VoIP subscriber market during the coming years. At the end of 2004, the three nations together accounted for 83 percent of the total residential wireline VoIP subscribers. By 2010, these countries still will account for more than half of all residential VoIP subscribers-at 56.4 percent.
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How much growth will there be in residential VoIP subscribers in other nations?
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How quickly will shipments of residential VoIP gateways grow in the coming years?
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How much will the VoIP equipment semiconductor market expand from 2004 to 2010?
Find the answers to these questions and many more in the new iSuppli report entitled: Gateway to Doorway: Market Dynamics of Residential Wireline and Enterprise VoIP.
About iSuppli Corporation
iSuppli Corporation, the global leader in electronics industry intelligence, provides market intelligence services for the EMS, OEM, and supplier communities. iSuppli employs the world's largest and most experienced staff of component, systems, and application market analysts. More information is available at www.isuppli.com