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Nortel Propels Softswitch and Media Gateway Market in Fourth Quarter 2005

Dell'Oro Group Increases 2006 Forecast for Carrier IP Telephony Market

Redwood Shores, Calif. – February 21, 2006 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the Carrier IP Telephony market grew 64 percent year over year in the fourth quarter of 2005. Nortel was the largest contributor to the market's growth during the quarter, followed by Alcatel and Italtel. Dell’Oro Group raised its 2006 forecast for Carrier IP Telephony market sales by approximately 10 percent, to over $3.0 billion, as the number of customers deploying IP Telephony is expanding.

"Telecom service providers worldwide are following Asia's lead in preparing their networks for Voice over IP, and they are clearly picking up the pace of deployment," said Steve Raab, Director IP Telephony Research at Dell’Oro Group. "The most notable acceleration has come from European service providers. They have stimulated tremendous demand for broadband access over the past year or two, and now they are preparing for the next step of Voice-over-Broadband," added Raab.

About the Report

The Dell’Oro Group IP Telephony Carrier Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, license/channel and unit shipments for softswitch, media gateways, and hybrid media gateway softswitches (next generation class 4/5 switches). The report also includes breakouts of high density, medium density, and low density media gateways. To purchase this report, call +1.650.622.9400.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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