Week in research: VoIP boosts core voice; DSL equipment sales climb

Enterprise VoIP boosts core voice: Emerging IP voice services like SIP trunking and hosted unified communications (UC) helped drive growth in the wireline voice core market, says an Exact Ventures report. The market grew seven percent sequentially in 2Q 2011. Enterprise session border controllers and voice application servers jumped 40 percent compared to the second quarter of 2010. Asia Pacific, not surprisingly, led the resurgent next generation networks market, with Alcatel-Lucent (NYSE: ALU), Huawei, and ZTE recording significant sales of IMS core equipment. "Enterprise VoIP is clearly a key factor in the resurgence of the wireline NGN market," said Greg Collins, founder and principal analyst at Exact Ventures. "The older, more traditional wireline NGN segments of softswitches and media gateways, however, are beginning to show stability as growth in wireline VoIP services will also need to interface with legacy TDM services," Collins added. News release

Broadband equipment sales healthy: Likewise in the second quarter, sales of PON, FTTH and DSL equipment rose 12 percent sequentially as Tier 1 carriers in the United States and EMEA increased spending, particularly on VDSL, Infonetics Research reports. "Also notable this quarter is the phenomenal EPON market growth in China, where EPON spending surpassed the $600 million mark and EPON ports surpassed the three million mark for the first time, thanks to China Telecom and China Unicom," said Jeff Heynen, directing analyst for broadband access at Infonetics Research. News release

Infonetics DSL equipment market

Ethernet switches rise, temporarily: From Q1 2011 to Q2 2011, the Ethernet switch market rebounded, growing eight percent sequentially in L2-L3 switching. Data center deployments were responsible for much of the growth, particularly those utilizing 10 Gigabit Ethernet in top-of-rack and blade switches. "10 Gigabit Ethernet continues to be the main driver of revenue growth in the market as customers continue significant investments in the data center. Despite strong sequential growth, we continue to expect overall market revenue to decline year-over-year in 2011," said Alan Weckel, Senior Director of Ethernet Switch Market Research at Dell'Oro Group. News release

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