Battle ensues for top spot in voice-over-broadband gateway market, reports RHK

May 17, 2001

May 17, 2001--According to RHK, 97 percent of worldwide VoB gateway deployments are in the U.S.. To date, no clear market leader has been established.

A new study released by telecom market research firm RHK shows shipments of voice-over-broadband (VoB) gateway equipment totaled $53 million in 2000. Total revenue for the VoB gateway market was led by Jetstream with 29 percent share, CopperCom at 28 percent, Accelerated Networks at 21 percent, and TollBridge Technologies at 19 percent. This is the first market share report RHK has produced on the emerging VoB technology.

In its report, "Access Network Systems: North America -- VoB/IMAP: 2000 VoB Gateway Market Share," RHK defines Voice-over-broadband as the ability to support multiple toll-quality voice calls and high-speed data over a single broadband connection. To date, those adopting and benefiting most from this technology are small to medium-sized businesses, as well as the small office and telecommuter segments. Voice-over-broadband can be supported by a number of broadband access technologies, including DSL, cable, and broadband wireless. However, the majority of VoB deployments to date have been over DSL.

"Competitive service providers are seeking ways to cost-effectively offer a bundled package of voice and data services to the small and medium business segments," said Teresa Mastrangelo, Senior Analyst in RHK's Access Network Systems service. "With VoB gateways, service providers can leverage both their installed DSL and legacy voice infrastructures to deliver higher-margin services." Mastrangelo added, "Over the next year we expect to see an increase in VoB deployment, as well as expansion into other broadband access technologies, particularly the cable network."

According to RHK, 97 percent of worldwide VoB gateway deployments are in the U.S.. To date, no clear market leader has been established. While Accelerated Networks led in both port and unit shipments, Jetstream led in total revenues. CopperCom was runner-up in all three categories. RHK believes market leadership will become clearer in 2001 as VoB gateway deployments are expected to increase and other vendors gain traction in the market.

"Because the market is still emerging and relatively small, we find that there are several new vendors entering this segment that could upset the current balance and gain significant market share," said Mastrangelo.

"Access Network Systems: North America -- VoB/IMAP: 2000 VoB Gateway Market Share" provides detailed analysis of each vendor's market share position and strategy, revenue, gateway units, and ports shipped.

About RHK:

RHK Inc. is a global industry market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. For more information, visit www.rhk.com.