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Worldwide gateway boom

Total worldwide sales revenue for signaling gateways, media gateways, media servers, and session border controllers is expected to increase at a compounded rate of nearly four percent over the next five years, says a new market study from Insight Research (http://www.insight-corp.com).This specialized equipment enables traditional phone networks to interconnect to and move data across the Internet. During 2005, nearly $2.2 billion worth of gateway technology was sold in global markets; by 2010, sales of new gateway gear will increase to $2.6 billion annually, according to this industry research study.
Insight's newly-released market analysis report, "SIP, SS7 and Gateways: A Transaction View of Next-Gen Operations 2005-2010, " reveals that while global gateway sales will increase at a modest rate of just under four percent over the forecast period, SIP gateways, wireless gateways, and hybrid fiber coax gateways will buck the trend and are expected to exhibit sales revenue growth rates in excess of 30 percent over the forecast period.

The study examines 11 types of gateways, as well as session border controllers and media servers, all of which are driven by similar market demand. The study forecasts unit demand and revenue by geographic region for SIP gateways, enterprise gateways, enhanced services gateways, wireless gateways, Internet telephony gateways, media gateways, hybrid fiber coax gateways, least cost gateways, CO trunk gateways, GR-303 gateways, and signal gateways. Worldwide unit shipments and revenues for session border controllers and media servers are also provided by geographic region.

"In the current investment climate, it is apparent that NGN deployment cycles are going to be pushed out several years, which means the gateway approach is a viable means to 'sweat' additional Internet-related service revenues from the PSTN, " says Robert Rosenberg, Insight's president. "While unit shipments of gateways will increase at a healthy rate over the forecast period, worldwide sales revenue is showing only modest growth as competition beats down prices and IMS-compliant gear begins to grab a foothold by simplifying interoperability requirements and thereby reducing the need for gateways, " Rosenberg concludes.



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