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VoIP Services Demand Bring Back Media Gateway Market
Media gateway space recovers from market collapse of CLEC and severe downturn in carrier capital expenditures (CapEx).
August 30, 2004
1 Min Read
The market for media gateways, aided by increasing popularity of Voice Over Internet Protocol (VoIP) service, will grow by nearly 30 percent per year through 2008, according to In-Stat/MDR. (Media gateways interconnect and translate between two different types of media. For example, Internet and the PSTN.)
The market was hit by the collapse of CLECs, the severe downturn in carrier capital expenditures (CapEx), and the resulting fallout. However, VoIP has endured because the benefits are too compelling, and those advantages have benefited, and will continue to benefit, the media gateway market.
In-Stat/MDR has also found that:
Increased media gateway shipments and deployments in cable and wireless networks will drive total shipments higher over the next several years.
As with several markets, many companies optimistically entered the media gateway market during its early stages. The ensuing telecom meltdown led several companies to exit the business and others to form partnerships or be acquired to survive. Partnerships and acquisitions have continued even as this market has been revived.
Overall, high-density ports dominated total media gateway shipments in 2003 with 60.0 percent of the total ports shipped.
An increasing mix of low-density gateways through 2008 will hold the average selling price of media gateways relatively stable from year to year even though prices for each density type are expected to decline slightly.
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