Carrier VoIP Sales Stalled

The struggling global economy has taken its toll on the carrier VoIP equipment as sales fell 6% last year, the first time ever the market has declined.

Infonetics Research said large RBOCs and ILECs are slowing down on VoIP given that many large projects have been completed, while carriers are moving their capital expenditures to other priorities. Meanwhile, cable MSOs are getting ready to deploy residential VoIP but may delay spending until 2010.

“The fourth quarter of 2008 confirmed what we started seeing in the previous two quarters in North America, with signs in Western Europe and some parts of Asia as well: the market for carrier VoIP equipment has stalled due to large deployments nearing completion and shifting strategic priorities,” said Diane Myers, directing analyst, service provider VOIP and IMS with Infonetics. “The global economic downturn will likely exacerbate the drop in VoIP equipment sales.”

While the VoIP market was down last year, Nortel did well in the fourth-quarter, boosting its softswitch and trunk media gateway sales, while gaining market share in both categories.

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  • protosphere

    “Carrier Voice Sales Stalled”, what isn't stalled like their growing list of creditors

    Declining “available cash” of this $2.4B is what now? …vs. only $4.5B debt in Q408 with growing creditors today… a ratio worse on both ends today… as “VoIP Sales Stall”.. or rather decline “for the first time ever.”

    The news is not getting any better headed into this moving fast to keep customers or present a restructuring plan subject to even more bonuses if approved. I

  • Nortel watcher

    Since Nortel moved away from its matrix structure to one of Business Units, then would it be fair to conclude that anyone at the director level or lower tied to Carrier VoIP is in the worst possible position that one could be in at Nortel?

    Here's what I mean. The WSJ has announced that NT is entertaining offers for the Enterprise and Wireless businesses whose proceeds will obviously go to creditors. That means NT will be left with the MEN and Carrier businesses of which Carrier is expected to reach lower sales Y o Y again for 2009.

    Bottom line: Do the folks working in Carrier VoIP have one foot out the door already?

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