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For more information, contact:
Kirsten Skedd, Marketing Manager
Phone: 480.609.4534; Email: kskedd@instat.com

 NETWORKING TECHNOLOGY 

The Need for Voice over Packet to Result in Silicon Racket


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SCOTTSDALE, Ariz., August 20, 2001 - The need for equipment supporting the transition from circuit-switched to packet-switched networks is creating a growing market for ICs with specialized packet voice processing capabilities, according to Cahners In-Stat Group (http://www.instat.com). As a result, the high-tech market research firm projects that the number of VoP (Voice over Packet) IC ports shipped will experience a CAGR of 64.5 % from 2000 to 2005.

"Chip manufacturers are working to fill demand by developing silicon solutions more highly integrated and customized for different equipment segments: infrastructure, business and residential gateways that support VoP and packet phones," says Mike Wolf, Director of In-Stat's Enterprise and Residential Communications Group. While the promise of this rapidly developing market is great, In-Stat warns that the transition from today's circuit switched networks to packet based networks will take time. "Despite all the hype behind IP telephony, the potential of the market is only starting to be realized during the forecast period. Major market hurdles are still being overcome, and current economic conditions have resulted in slow growth in 2001," says Wolf.

In-Stat has also found:

  • Because of the high investments already made in circuit switched networks, the pullback in carrier spending on new technologies, and the relative lack of maturity of current technologies for VoP, the transition from PSTN to Voice over Packet will be a gradual one.
  • Both the business and residential voice markets will see increased penetration of VoP technologies.
  • The Voice over Broadband technologies such as VoDSL, VoCable and VoWireless that are in embryonic states today will mature rapidly as standards and technologies develop in the next few years.

The report, "The Silicon Racket for Voice over Packet," (#NT0104NW) provides a forecast for VoP communications processors through 2005, segmenting between ICs used in packet phones, infrastructure VoP gateways, business VoP gateways, and residential VoP gateways. The report includes analysis of the major market trends driving growth in VoP chips, as well as perspective on the overall VoP chip market. Profiles of VoP chip manufacturers are also included. To purchase this report or for more information, please contact Courtney McEuen at 916.984.1179; cmceuen@instat.com. The report price is $2,995 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (http://www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

For more information, contact:

Mike Wolf, Director - Enterprise and Residential Communications
Phone: 425.673.0313
Email: mikew@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534

Email: kskedd@instat.com

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