Legacy Switch Market to Remain Strong Despite Move to I/P-Based Switching

Legacy mobile switching vendors will lose some ground but remain vibrant as mobile carriers continue to utilize legacy switching gear as well as IMS and IP-based apparatus, according to a new report from Visant Strategies.

"Carriers are aggressively changing out parts of the core network in order to meet their users' needs and their own economic goals. It has been a varied approach but strong in every sense, so everyone wins," said Larry Swasey of Visant Strategies.

Continued deployment of CDMA EV-DO, WCDMA/HSDPA and GSM/GPRS/EDGE base stations will lead to an ever increasing market for all mobile network components, the study finds.

"New switching technologies can help offset lower voice tariffs, high network investment and increasing operating costs while also allowing for the triple play and an easier integration of fixed and mobile networks," Swasey said. "But, that said, GSM/GPRS/EDGE growth in emerging economies and conservative technology management in mature cellular markets will maintain investment in legacy switching."

According to the report, annual global softswitch sales will reach over $6 billion in 2011 while revenues for IP-based and IMS-based gear will be nearly the same that year. Deployments of GSM MSCs will exceed 15,000 in 2011 up from just over 14,000 in 2006 while investment in legacy switches and controllers is expected to top $29 billion in 2011, though it is forecast to peak in 2009. "

Posted to the site on 31st May 2007