Telecom Gateway Market Showing Solid Growth

(Top News, 20 Aug 2008)

Total worldwide sales revenue for telecommunication gateways and session border controllers is expected to increase at a compounded annual growth rate of nearly 13 percent over the next five years, according to a new market study by Insight Research. By 2013, sales of new gateway gear will increase to $3.5 billion annually, up from nearly $2 billion worth of gateway technology in 2008. This specialized equipment enables traditional phone networks to interconnect with next generation network services that make extensive use of the Internet.

Also according to the report, while global gateway sales will increase at just under 13 percent over the forecast period, hybrid-fiber coax gateways, SIP gateways, and session border controllers will buck the trend and are expected to exhibit sales revenue growth rates in excess of 30 percent over the forecast period.

"The Next Generation Network, which will make extensive use of IP and web services is still years away from generating serious revenue, and in the meantime carriers are not about to fork lift out the infrastructure that makes them money today," says Robert Rosenberg, President, Insight Research. "Gateways form the link between today's revenue-generating services and what the carriers will be building to generate their future revenue streams, so we expect the telecommunications gateway market to continue growing for at least the next five years."

Click here for more information on Insight Research