Outlook "decent" for VoIP provider market

The outlook for the VoIP provider market is "decent" in light of the global economic turmoil, a new report has indicated.

Figures from Infonetics Research revealed that the worldwide VoIP provider market dropped eight per cent sequentially during the third quarter of the year to $816 million (£554 million).

However, this was partly due to the downturn in the world's economies, causing Infonetics to highlight that the outlook was not as bad as some industries.

"The quarter also reflects the global economic downturn, which is turning the expected VoIP deployment dip into a drop," said principal analyst for VoIP Stephane Teral.

"New VoIP projects will be postponed at best, and some may be cancelled altogether, as more consumers ditch their fixed lines, thus cutting the need for wireline upgrades."

Infonetics predicted a "pause" for the next two years, with the market regaining strength in 2011 and Voice over broadband (VoBB) continuing to be a "big driver".