VoIP Sector To See Stabilisation During 2010

Jeffrey Burt is a senior editor for eWEEK and contributor to TechWeekEurope

The improving economic environment is just one of a number of factors being cited as to why the IP telephony market is set to stablise in 2010

After a shaky couple of years, market researcher Dell’Oro Group believes that the VoIP (Voice over IP) market is set to stabilise this year, thanks an expected growth in the housing market and aggressive pricing bundles from service providers.

In a report 10 February, Dell’Oro analysts said they expect that the number of subscribers to VoIP services will grow in 2010.

At the same time, the improving economic picture will mean that network modernisation projects that were put on hold during the recession will now get a boost, they said.

However, even as shipments of VoIP equipment increases, overall the market will probably contract slightly in 2010 due to the price declines, according to Dell’Oro.

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Looking ahead, the VoIP market will see slow but steady growth over the next four years, with increases in the low single digits through 2014, according to Dell’Oro analyst Greg Collins.

“Future growth in broadband subscribers will likely be boosted over the next five years by government initiatives, such as the National Broadband Plan in the United States, which will target greater availability and adoption of broadband services to hard-to-service customers and customers who otherwise are unable to afford it,” Collins said in a statement.

Growth in VOBB (voice over broadband) will closely follow broadband deployments, though such deployments will not impact the equipment market until 2011, Collins said.

It will be around then that regulations and spending grants will get finalised, he said.