Global VoIP market slows but doesn't stall

While the current global slow down in telecommunications equipment spending will have a discernible impact on VoIP vendors, it will not stall the overall technological shift toward next-generation solutions that is currently underway, say analysts at IDC.

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By  Matthew Southwell Published  August 30, 2001

While the current global slow down in telecommunications equipment spending will have a discernible impact on 'Voice Over IP' (VoIP) vendors, it will not stall the overall technological shift toward next-generation solutions that is currently underway, say analysts at IDC.

In addition, the analyst house believes that the current market slowdown in telecom will have a mixed effect on the market for IP telephony equipment. One reason for this is the IP telephony equipment market sprawls across many different equipment types and applications.

"Some applications associated with VoIP deployments will be much more affected than others," said Tom Valovic, director for IDC's IP Telephony program. "Certain types of applications that are dependent on longer term market forces associated with infrastructure development will weather the storm better than more speculative areas such as enhanced services."

Despite many of the doom-and-gloom reports about the dearth of venture capital funding, funding for vendors in this market space has been moving ahead significantly over the last quarter, IDC reports. For example, Snowshore, Rapid5, Coppercom, Vpacket and several other next-generation telecom vendors have all received new rounds of funding.

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