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Carrier IP Telephony Market Loses 20 Percent of Value in the Fourth Quarter of 2008

Despite Difficulties, Nortel Regains Market Lead; Huawei Loses Share as Developing Regions Weaken

Redwood City, Calif. – March 12, 2009 – A recent report published by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that the carrier IP telephony market contracted 20 percent in the fourth quarter of 2008 compared to the same quarter in 2007, due in large part to significantly lower sales in developing regions.

“Developing regions have been a key growth driver for the carrier IP telephony market, as new construction and rising incomes have driven investments in fixed-line telephony services,” said Greg Collins, Vice President at Dell’Oro Group. “While we saw a market decline coming from developing regions in the fourth quarter of 2008, it is unclear exactly to what extent the decline in consumer demand in the U.S. will affect the future economies of developing regions, which have relied largely on exports to the U.S. for their growth,” he added.

Despite continued financial struggles and corporate restructurings, Nortel regained the market’s top vendor position based on revenue in the fourth quarter with 13 percent market share. The report indicates that Huawei, which has a strong presence in developing regions, lost market share in the fourth quarter; however, its market share was up for the full-year 2008.

About the Report

The Dell’Oro Group Carrier IP Telephony Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, license/channel shipments for softswitches, media gateways, session border controllers and voice application servers. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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