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VoIP To Become Just Another Application?

New forms of interconnection at both the edge and the core ultimately mean VoIP chips will disappear at the network level.

The VoIP IC market is not only growing, but also shifting as consumer offerings expand, reports In-Stat. Wireless and video will play stronger roles in the next several years and present new challenges for chip level players, the high-tech market research firm says.

"Tomorrow's IP phones and the semiconductors used to produce them will clearly be very different from today's business-oriented sets," says Norm Bogen, In-Stat analyst. "New forms of interconnection at both the edge and the core ultimately mean VoIP chips will disappear at the network level, as VoIP fulfills the prophecy that someday it will be 'simply another application on an IP network.'"

Recent research by In-Stat found the following:

* While today, less than 16% of total VoIP chip revenues are attributed to IP phones, this segment will represent close to 60% of total sales by 2010.
* Revenues associated with VoIP ICs will grow from $613.7 million in 2006 to $2.63 billion by 2010.
* Infrastructure revenues associated with VoIP chips will make up only 13.6% of total revenues in 2010.

The research, VoIP Chips: Preparing for a Wireless Multimedia Future covers the market for Voice over Internet Protocol semiconductors. This research addresses the often complex interplay between end-users, carriers, equipment manufacturers, and VoIP chip producers -- which the company says is crucial to understand given the ripple effect throughout the value chain associated with enabling a wireless, multimedia future.

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Photo BroadVoice Wi-Fi Telephone by Jehochman. Creative Commons License Attribution 1.0