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IP telephony carrier market 'contracts' / Tuesday, September 09, 2008
The market for IP telephony carriers contracted in the second quarter of 2008, it has emerged.
Research from the Dell'Oro Group reveals the value of the market has fallen by ten per cent to $861 million (£487 million), with service providers instead focusing on revenue generation.
It said the application server market nevertheless grew by nearly 30 per cent, year-on-year, as these products are used for new revenue-generating services.
Greg Collins, vice-president at the group, said: "Through the first half of 2008, service providers have had trouble justifying the investment in infrastructure upgrades."
He ascribed this to a decline in fixed-line business revenues as a result of price erosion and consumers switching to cable and wireless services.
Voip.Org.UK explains IP telephony can be implemented in a number of ways, including the installation of software on a personal computer and the use of a headphone and microphone to make calls.