VoIP equipment purchases are decreasing at the expense of spending on the deployment of IMS (IP multimedia subsystem) technology, according to Infonetics Research.

Worldwide sales of IMS equipment, including HSS (home subscriber servers), CSCF servers, and voice application servers, are forecast to jump 74 per cent in 2009 over 2008.

However, worldwide VoIP revenue in Q1 totaled USD $600.4 million, down 33 per cent from the first quarter of 2008 – the sharpest quarterly decline ever.

Diane Myers, directing analyst, Service Provider VoIP and IMS at Infonetics Research, said no product segment or region was immune to declines in the service provider VoIP equipment market.

Diane Myers, Infonetics Research

Most large Tier 1 service providers are coming to the end of major VoIP projects and most ILECs and PTTs have put PSTN migration plans on hold.

She said the service provider VoIP equipment market had a "rough" first quarter, declining 29 per cent sequentially in worldwide revenue. "The market pause for VoIP equipment is being exacerbated by the global economic downturn as service providers put VoIP equipment purchases on hold," she said.

"We are beginning to see a noticeable shift in spending from stand-alone VoIP networks to IMS deployments."

Myers said that while the core IMS equipment segments, CSCF and HSS, are still small compared to the service provider VoIP market, deployments remain strong in EMEA and Asia Pacific.

Infonetics’ IMS Deployment Tracker shows Ericsson, Alcatel-Lucent, Nokia Siemens, and Huawei leading the way with core IMS equipment.

"The core IMS equipment market had an impressive quarter with $63.7 million in revenue," she added.

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