November 12, 2012
Session Border Controller Market Bounces Back
By Rich Steeves TMCnet Web Editor
A little over a year ago, there was some uncertainty in the session border controller market. Market watchdogs at the Dell’ (News - Alert)Oro Group noticed a sharp downturn in selling prices that seemed to indicate a trend away from the unified communications technology. But now, after looking at the results of the third quarter of 2012, it looks like the session border controller market has bounced back.
The Dell’Oro Group announced that the session border controller market experienced an 11-percent growth in revenue in the third quarter of 2012 compared to the third quarter of 2011. One technology that is believed to have given a boost to the market is Voice over Long Term Evolution, or VoLTE. As providers began to offer these services across North America and Asia, the demand for SBCs grew.
"Five quarters ago, Dell'Oro Group warned of impending competitive changes in the SBC industry, and selling prices dropped 28 percent by early 2012 versus mid-2011. While pricing has not reached pre-warning levels, they are now on the rise," said analyst Chris DePuy, in a statement. "In addition, VoLTE services are now commercial in two continents, marking the beginning of a powerful trend that should cause a return to growth in SBCs, and continued growth in technologies such as IMS and VoLTE Applications Servers."
Leaders in the space include Sonus Networks, Acme Packet and Huawei (News - Alert). These companies have been riding an overall growth trend in the IP telephony space as many companies switch over to VoIP services. The space tallied revenue of $1.4 billion in the last year.
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Edited by Rachel Ramsey