Market Growth Predicted for Media Gateways, Signaling Gateways and Media Servers

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BOONTON, NJ. December 2, 2002:

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Telecommunications gateways constitute one of a handful of telecom hardware segments still racking up healthy sales, says a new research study from Insight Research.  This specialized equipment enables traditional phone networks to interconnect and move data across the Internet.  By the close of 2003, nearly $1.3 billion worth of gateway technology will be sold in global markets, and by 2008, the worldwide market for gateways will more than double, reaching $2.8 billion according the new market research study.

Insight’s newly-released market analysis report, Media Gateways, Signaling Gateways and Media Servers 2003-2008, reveals that gateway sales will grow at a compounded rate of over 17 percent during the forecast period, as traditional telecom providers use the technology to link to the Internet and gain additional service revenue without costly network upgrades.  The study examines 12 types of gateways as well as media servers, which are analogous to gateways and driven by similar market demand.  

The consolidation taking place in the telecommunications segment has driven technology budgets downward, and put a cap on the once-urgent demand for traditional phone companies to leap into a next generation network (NGN) that would employ Internet packet-switching techniques.  Gateways allow telcos to link to the Internet and provide new services without a massive overhaul to their present network.   

“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 the only viable means to ‘sweat’ additional Internet-related service revenues from the PSTN,” says Robert Rosenberg, Insight president.  “Owing to the economic slump, operators simply are not in a position to replace the legacy infrastructure that is presently generating revenue with IP/NGN hardware.  Gateways are a hot market because they give phone companies a low-cost way to provide IP-based services right now, without major surgery to the network,” Rosenberg concludes. 

A free report excerpt, table of contents, and ordering information are available online at www.insight-corp.com/gateways03.asp.

IP Telephony:  Service Revenue and OSS Expenditures for Voice over Packet Networks 2002-2007

Donna Savino

at Insight Research