VOIP gateway market to reach 1 billion by 2009

The global service provider voice over Internet protocol (VoIP) gateway market will grow from $165.3 million in 2003 to $985.7 million dollars in 2009, according to a new report by Research and Markets.

The growth will be fueled by the replacement of digital proprietary voice switching systems with systems that can deliver VoIP reliably and clearly, according to the report, "Voice Over Internet Protocol (VoIP) Market Opportunities, Strategies, and Forecasts."

The report notes that VoIP can be implemented in two ways: Calls can originate from a traditional TDM circuit switched technology (TDM to IP), or instead can originate from an Internet protocol router (IP to TDM).

IP to TDM will quickly dominate the market, the report says, because TDM to IP call origination is outdated and far more expensive that IP to TDM. In addition, the growth of broadband in the home will fuel IP to TDM growth. IP to TDM will be the engine that drives market growth.