What happened to new voice infrastructure?

July 10, 2001
July 10, 2001--A new report released by telecom market research firm RHK Inc. shows that the North American market for new voice infrastructure (NVI) will reach $210 million in 2001 -- growing only 12 percent annually through 2003.

A new report released by telecom market research firm RHK Inc. shows that the North American market for new voice infrastructure (NVI) will reach $210 million in 2001 -- growing only 12 percent annually through 2003. A recent update to RHK's November forecast shows that although NVI will exceed RHK's previous prediction for 2001, the overall rate for this market will not see the kind of growth originally expected. RHK experts attribute this change to a variety of factors, including: CLEC failures, lack of end-user demand, sluggish deployment of broadband access, and the availability of highly discounted TDM voice equipment.

RHK's new voice infrastructure forecast covers shipments for high-density media gateways, softswitches, application switches, application servers, and media servers for service providers. The forecast does not include Voice-over-IP applications for the enterprise. NVI is an emerging market that in 2000 began to generate revenue for the first time. RHK explains that expectations for this market's rapid growth have been curtailed by the recent economic changes in the market.

"The downturn of the North American telecom market has affected NVI deployments significantly," states John Kuzma, RHK's Senior Analyst for New Voice Infrastructure. "We have seen a shortfall in end-user demand and a weak competitive landscape, both of which give incumbent carriers little incentive to offer any form of packet-voice to their customers," Kuzma continues, "Despite its shortcomings, NVI is still an emerging market in its formative years. A number of variables could change it dramatically as we wait for the technology to mature."

RHK expects growth of NVI to come from applications such as pre-switch Internet offload, post-switch Internet offload, tandem replacement, and tandem offload. These applications will be critical for service providers who seek to offer personalized services to their end users.

"We expect interest in hosted voice applications to increase as service providers search for methods to grow revenue and differentiate themselves," says Kuzma. "Solutions such as PacketCable hold significant promise to address this demand, with the potential to deliver end-to-end VoIP to millions of residential users and to pressure incumbents to offer local-loop VoIP." Detailed analysis of the new voice infrastructure market is available from RHK's New Voice Infrastructure service. This service provides extensive research on key vendors and service providers in North America; market forecasts of new voice infrastructure technology; and analysis of the market and technology drivers influencing next generation packet-voice networks.

RHK's forecast is based upon interviews with service providers and equipment vendors throughout North America. This continuous information service from RHK's STARTRAX product offering provides market share and analysis reports, market forecasts, and vendor and service provider profiles, in addition to other standard program deliverables.

About RHK Inc.:

RHK Inc. is a market research and consulting firm specializing in the analysis of advanced technologies for the public telecommunications network. The company provides subscription services and custom consulting to technology vendors, service providers, and the investment community in North America, Europe, and the Asia-Pacific region. For more information, visit www.rhk.com.

Sponsored Recommendations

On Topic: Metro Network Evolution

Dec. 6, 2024
The metro network continues to evolve. As service providers have built out fiber in metro areas, they have offered Ethernet-based data services to businesses and other providers...

Innovating the network edge with 100ZR QSFP28: The next frontier in coherent optics

Jan. 15, 2025
In this webinar, Juniper Networks, EXFO and Precision Optical Technologies are teaming up to showcase the new 100ZR QSFP28 pluggable coherent technology, exploring its foundational...

ON TOPIC: Filling Coverage Gaps, Enhancing Public Safety

Jan. 30, 2025
With the ongoing drive to support AI and the need for high-speed data center interconnection, the call for higher-speed 800G optical technology is emerging. Initially focused ...

State of the Market: AI is Driving New Thinking in the Optical Industry

Dec. 5, 2024
The year 2024 marked an inflection point for AI. In August, OpenAI’s ChatGPT reached 200 million weekly active users. Meanwhile, McKinsey reported that 72% of ...