Robust Growth in End-User Segments Drives VoIP Semiconductor Market

PALO ALTO, Calif., Nov. 8 /PRNewswire/ -- The voice over Internet protocol (VoIP) semiconductor market is witnessing very high growth in all the end-user segments such as carrier infrastructure, enterprise, and consumer or residential markets. There is also a trend toward integration and this results in the need for a high-performance, low-power and cost-effective solution. In order to understand the changing market dynamics, it is imperative for vendors to have strategic relationship with customers.

New analysis from Frost & Sullivan ( ), World VoIP Semiconductor Markets, reveals that the market earned revenues of $256.2 million in 2005 and estimates to reach $857.8 million in 2009.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the World VoIP Semiconductor Markets, then send an e-mail to Tori Foster, Corporate Communications, at Email Contact with the following information: your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"An important driver for this market is that the VoIP technology has become mainstream in the industry and semiconductor technology has improved by large, pushing down costs, making it an attractive and affordable proposition," says Frost & Sullivan Research Analyst T. Govind Krishna Kumar. "Mainly service providers and carriers who are investing huge amounts to upgrade their existing networks, and are switching from voice-centric circuit- switched networks to packet-based IP networks have been driving this growth."

Due to an increase in competition, the carriers and service providers wanting to reduce capital expenditure (CAPEX) and operational expenditure (OPEX) and generate new revenue sources are driving the next-generation carrier infrastructure VoIP market. Carrier DSL and broadband networks also utilize VoIP packet gateways to act as an interface to public switched telephone networks (PSTN). This transition is taking place in mobile networks as well, where voice transcoding is necessary to convert voice coding applicable in wireless networks to that applicable in PSTN.

As equipment and handset manufacturers add more features in products such as residential gateways and IP phones, integration is likely to be a significant challenge for a semiconductor vendor. For example, the integration of a large number of residential gateway products with wireless local area network (WLAN) and VoIP capability, and in future, integration of video functionality with gateway products is likely. The majority of handset manufacturers have announced dual-mode cellular or wireless fidelity (Wi-Fi) phones and such products are pressurizing the semiconductor vendors to improve power consumption performance of their solutions.

"With increasing complexity of residential gateway and IP phone products, semiconductor vendors face the challenge to deliver high-performance and cost- effective solutions, while integrating all these functionalities on a single chip," explains Govind. "In addition, to enter the customer premise equipment (CPE) gateway market, semiconductor vendors face tremendous cost pressure."

It is imperative for vendors to have strategic relationships with customers to understand their changing needs, and remain competitive with their product offerings. To meet the changing needs of the customer and to expand their customer base, vendors need to have flexibility in their product line, along with continuous investments in research and development (R&D).

The World VoIP Semiconductor Markets is part of the Semiconductors Growth Partnership Service, and it analyzes the semiconductor products used in VoIP applications. This includes digital signal processors (DSPs), system-on-chip solutions (SoCs), application-specific integrated circuits (ASICs), and subscriber line interface circuits (SLICs), which are used to convert traditional circuit-switched voice to packet-based voice. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit .

                       World VoIP Semiconductor Markets

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Keywords in this release: World, voice over Internet protocol, VoIP, semiconductors, digital signal processors, DSPs, system-on-chip solutions, SoCs, application-specific integrated circuits, ASICs, subscriber line interface circuits, SLICs, research, information, market, trends, technology, service, forecast, market share

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