Disclaimer: We still don’t know what “core” means in this context of “WIreline Voice Core Revenues.” Does anyone know what is non core voice revenues?
Wireline voice core revenues were up 7% in the second quarter of 2011 over the prior quarter, according to research from Exact Ventures, which attributed the growth to continued demand for enterprise Voice over Internet Protocol services. The data also showed the market for IMS core equipment was up more than 50% year-over-year for the quarter because of large-scale deployments in Asia that boosted market share for companies such as Alcatel-Lucent, Huawei Technologies and ZTE.
Where did the Growth Come From?
Exact Ventures (who they?) said that the growth was driven in part by the continued strength of enterprise VoIP services, such as SIP trunking and hosted unified communications. The enterprise session border controller and voice application server markets each grew over 40% compared to the second quarter of last year.
“Enterprise VoIP is clearly a key factor in the resurgence of the wireline NGN market. 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,” said the firm’s founder and principal analyst Greg Collins.
“While wireline deployments currently dominate IMS Core sales, as voice-over-LTE services are introduced in the coming months and gain subscribers, the market will shift to become dominated by wireless deployments, which will drive the IMS market for well over a decade as the billions of wireless subscribers are gradually migrated to VoIP,” Collins added.
Note that if wireless subs move to Voice over LTE or voice over 3G+ technologies, that would certainly canabolize the cellco’s cash cow- voice minutes. We don’t think this will happen anytime soon.
Instead, we see continued growth in enterprise VoIP and related services, such as SIP trunking and hosted unified communications. Enterprise VoIP integration with legacy TDM Voice/PSTN will continue to be a “hot ticket,” best exemplified by SIP Trunking (Connects a premises or network hosted VoIP switch with the PSTN/ legacy TDM voice network).