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VoIP Sales To Hit $5.5 Billion By 2007: Report

VoIP hardware and software sales will reach $5.5 billion by 2007, but will then decline due a mature market and decreasing prices, according to a new report by Juniper Research.

The report says that VoIP revenue growth will be driven by rapid business growth in China, and widespread adoption of VoIP in the U.S. and Europe. But as low-cost suppliers enter the market, and the booming Chinese market matures, revenues will fall from 2007 to 2010, declining to $3 billion by the end of the decade.

The study also found that the market for IP-PBXs will be over $1.6b billion in 2007, with the largest markets being North America and China. IP phone sales associated with IP Centrex/hosted system sales will reach nearly 16 million units in 2010, it concludes.

In addition, the report concludes, the VoIP applications market will show sustained growth, and will reach $500 million by 2010.