Call for Packet Voice to Boost VoIP IC Revenues Reports In-Stat/MDR.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 3, 2003

With packet voice being the future of voice communications, In-Stat/MDR (http://www.instat.com) expects Voice over Internet Protocol (VoIP) equipment and VoIP Integrated Circuits (ICs), to see strong growth rates over the next five years. Although the market for VoIP equipment and component level devices is still at an early stage, and shipment volumes for traditional, circuit-switched equipment will outstrip VoIP shipments by an order of magnitude over the next several years, the high-tech market research firm projects that VoIP IC revenue will rise from $54.9 million in 2002, to $141.1 million in 2007.

In-Stat/MDR classifies VoIP ICs into three key segments: IP Phone ICs, Customer Premise Equipment (CPE) VoIP gateway ICs and infrastructure VoIP gateway ICs. In-Stat/MDR found the following with regard to each segment:

-- IP Phone ICs are becoming increasingly integrated and

specialized, with three port Ethernet switches, integrated

PHYs, and security processors becoming increasingly common.

Cellular/WLAN functionality will be bundled with IP Phone ICs

in the near future. IP Phone IC revenues will grow from $15.6

million in 2002 to $49.6 million in 2007, for a 26.0% CAGR.

-- CPE VoIP gateway ICs are, currently, used most in "two-box"

deployments in residential IP Telephony, with a separate

Analog Terminal Adapter (ATA) attached to a broadband modem.

While there are many good reasons for this model, over the

forecast period, a "one-box" model, with VoIP integrated

directly into a Residential Gateway (RG) will become the prime

form factor for residential deployments. Overall, CPE VoIP

gateway revenues are expected to rise from $21.1 million in

2002 to $55.1 million in 2007, for a 21.2% CAGR.

-- The infrastructure VoIP gateway (commonly referred to as a

"media gateway") market experienced a steep decline in 2001

and most of 2002, due to dramatically lowered telecom capex

spending. However, this market has picked up, particularly in

the Asia-Pac region, and is now experiencing solid growth.

Consequently, the market for infrastructure VoIP gateway ICs

will rise from $18.2 million in 2002 to $36.4 million in 2007,

for a 14.8% CAGR.

-- Texas Instruments (TI) currently dominates the VoIP IC market,

representing roughly 80.0% of the total shipment volume for

each of the three key segments.

The report, "VoIP ICs: The Market Calls For Packet Voice" (#IN030849NT), analyzes the market for VoIP ICs, including silicon and equipment trends, and provides shipment and revenue data for 2002, as well as a five-year forecast to 2007. Three key segments of the market are covered: IP Phone ICs, CPE VoIP gateway ICs (which are utilized in Analog and Multi-media Terminal Adapters (A/MTAs), some broadband modems and Residential Gateways (RGs), Packet Integrated Access Devices (Packet IADs), and IP-PBXs), and infrastructure VoIP gateway ICs (utilized primarily in media gateways and wireless infrastructure Base Station Controllers (BSCs). To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Ncatalogue.asp?id=28 or contact Courtney McEuen at 281-246-4668; [e-mail]. The report price is $2,995.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.