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VoIP Services Demand Bring Back Media Gateway Market

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.
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