NETWORKS

OYSTER BAY, NY -- The softswitch will increasingly gain value within the Next Generation Network (NGN) over the coming years creating a $4.1 billion market by the year 2006. Over that time the industry will intensify its focus on the Class Five replacement segment of the market, marking further evolution of Voice over Internet Protocol (VoIP) technology. These findings are according to a new study by Allied Business Intelligence (ABI) entitled, "Telecom Softswitches: Legacy Architectures and the Next Generation Network." The NGN breaks out the functional components of the traditional circuit switch into separate pieces of equipment. The study focuses on the softswitch which acts as the intelligence of this new network. ABI sees the circuit switch market in decline while the softswitch market is growing at a compound annual growth rate (CAAG) of 119%. Additionally, the value of the softswitch will continue to increase relative to the other components of the architecture as its capabilities become increasingly robust. Even in this troubled economy, carriers are still looking to incorporate Voice over Internet Protocol (VoIP) into their networks. Sending voice over IP networks is seen as an attractive alternative to utilizing the large, expensive circuit switches that make up the traditional telephone network. The softswitch as the network call agent provides the platform that will enable innovative revenue generating services and applications. The study takes a more in depth look at one of these applications, the hosted solution or IP Centrex which can be offered by service providers to business customers looking to outsource their telephone system. ABI forecasts that the value of this nascent market will grow to a market of over $4 billion. While North America is ahead of the rest of the world in developing this technology, the study identifies the Asia Pacific region as a high growth area, noting its ready acceptance of the technology and its use of VoIP for long distance toll arbitrage. The study also looks at the different strategies taken by the many vendors and attempts to define this dynamic space. For further information visit www.alliedworld.com