Voice over LTE (VOLTE) continues to positively impact the service provider VOIP and IMS equipment market.
So says Diane Myers, principal analyst for VOIP, UC and IMS at Infonetics Research, commenting on the findings of the Service Provider VOIP and IMS Equipment and Subscribers report published this month.
"We expect the market to slow this year as operators commercially launch services and draw down capacity built over the past year," says Myers.
"Already this year we have seen AT&T, PCCW/HKT and other operators launch VOLTE services, and NTT DoCoMo is set to do so in June. There will be additional launches in 2014 by large and small providers alike that will hit the bottom line, but mobile does not completely dominate the picture. Spending on Class 5 replacement and voice over broadbands and SIP trunking expansion will continue."
According to Infonetics Research, worldwide service provider VOIP and IMS equipment revenue totalled $992 million in 1Q14, an increase of 37% from 1Q13, but a sequential decline of 9%.
The research firm adds that most segments were down on a sequential basis following a strong 4Q13.
The core IMS and voice application server segment posted the strongest growth in 1Q14, continuing to be driven by VOLTE activity in the large North American and Asian markets, it notes.
All regions are up on a year-over-year basis in 1Q14, with Asia-Pacific and North America forming the foundation for the IMS rise due to activity from mobile operators, the report notes, adding that the standout vendor in 1Q14 is Alcatel-Lucent, rising to the top due to strong growth of core IMS and voice application server revenue, particularly in North America.
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