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Report: Subscribers Continue To Push VoIP-Gear Growth: Page 2 of 2

End-user demand is driving a boom in Class 5 softswitch revenue, which Infonetics pegged at $76 million in the third quarter. Although revenue from Class 4 softswitches is still higher than is revenue from Class 5, Mitchell said end-user and subscriber VoIP growth is increasingly pulling up the Class 5 products. Infonetics said Nortel Networks accounts for nearly 50 percent of the Class 5 switch market; Siemens is second.

Driven by the demand for switching between legacy TDM and new-generation switching, worldwide media gateway revenue is also increasing, Mitchell said. This market segment is led by Cisco Systems, followed by Sonus, a relative newcomer to the market.

Mitchell predicted the next-generation VoIP product mix will record a strong compound annual growth rate moving toward 2007.