The carrier IP telephony market contracted about 20 percent in the fourth quarter of 2008, compared to the same quarter in 2007, but hard-scrabble Nortel Networks Corp. hangs on to the No. 1 position in market share.
The decline in the market overall is due in large part to significantly lower sales in developing regions, according to analyst firm Dell’Oro Group.
“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. “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.”
Meanwhile, despite continued financial struggles and corporate restructurings in the fourth quarter, Nortel regained the market’s top vendor position based on revenue, with a 13 percent market share.
Huawei, which has a strong presence in developing regions, lost market share in the fourth quarter; but its market share was up for the full-year 2008.