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Packet Telephony Gateways to Thrive During PSTN to Internet Conversion Says In-Stat.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 21, 2001

As the public switched telephone network (PSTN) is gradually replaced by the Internet as a mode by which to carry voice, data and video traffic, growth in both port shipments and revenues for packet telephony gateways will escalate, according to Cahners In-Stat Group (

The high-tech market research firm finds that, as a result, packet telephony gateway revenues will reach $5.855 billion in 2005.

"The Internet is being continually enhanced with higher speed access, convergence products such as packet telephony gateways and software to provide basic and enhanced services.

"However, we are still in the early stages of this evolution and it will take many years before the world is completely connected via a converged digital network," said Norm Bogen, director of In-Stat's WAN and Service Provider Group.

At present, packet telephony gateways are being deployed by a variety of service providers in order to offload data and voice traffic from the PSTN. This is enabling providers to deliver lower cost long distance voice services today and to create a next generation network capable of delivering advanced voice, video and data services tomorrow.

Hence, the opportunity for packet telephony gateways exists today and will continue for many years before the PSTN is dismantled. However, In-Stat believes that IP networks will eventually become the single converged network of choice as they will provide increased scalability and flexibility, at a lower cost.

Bogen continued, "In the meantime, convergence products like packet telephony gateways will be used in conjunction with the overlay networks to send voice, data, fax or video from anywhere to anywhere."

In-Stat has also found that:
-- In 2000, there were a total of 5.143 million voice ports shipped on a
variety of packet telephony gateway platforms. The total manufacturer revenue
generated in 2000 from voice gateways was $1.127 billion.

-- Packet telephony revenues are expected to increase by 12.3 percent in 2001
to $1.265 billion. This relatively slow growth is due to the worldwide slowdown
in communications equipment spending that In-Stat expects to see this year.

-- Beginning in 2002, much more rapid growth is expected in both port shipments
and revenues for packet telephony gateways, resulting in gateway revenues of
$5.855 billion in 2005.

The report "Creating the New Public Network with Packet Telephony Gateways," (No. WN0102MI), segments the packet telephony gateway market by platform and provides equipment vendor market shares by platform in addition to a five-year forecast of port shipments and revenues for the total market.

To purchase this report, or for more information, please visit or contact Courtney McEuen at 916/984-1179; The report price is $3,495 USD.

Cahners In-Stat Group ( covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.
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Publication:Business Wire
Date:May 21, 2001
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