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News Release from: Venture Development Corp
Edited by the Electronicstalk Editorial Team on 17 November 2006
Survey predicts resurrection for SS7
signalling
The demise of the SS7 signalling system may be greatly exaggerated, according to recent trend analysis of the SS7 signalling market.
The demise of the SS7 signalling system may be greatly exaggerated, according to recent trend analysis of the SS7 signalling market from VDC's 2005/2006 Telecom Core Infrastructure Market Intelligence Service Many pundits are predicting the 30 year old infrastructure will decline dramatically in the face of the next generation network (NGN) packet technologies
This article was originally published on Electronicstalk on 17 Dec 2004 at 8.00am (UK)
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However VDC's research reveals that there may well be an uplift coming rather than a decline.
Derived from primary research into the expected purchasing plans of Service Providers and expected shipments of Equipment Vendors, VDC's projections of compound annual growth rates (CAGR) for SS7 Infrastructure Elements illustrate clear market opportunities for vendors.
The two-to-one growth of the signalling gateways (SS7 SG) the result of: the deployment of packet networks as less expensive expansion alternatives to circuit switched inter-toll trunks; and increased cellular subscription and usage on a global basis.
"Gateway usage volumes are impacted by the geography of deployment and a large forecast is consistent with deployment of 'islands' of next-generation technology", states Robert Johnson, Senior Analyst of VDC's Telecom Practice.
"If deployments of NGNs took place in large contiguous geographic areas - or if there were a wholesale replacement of existing network equipment - it would be reasonable to expect a requirement for a much smaller number of gateways".
The second effect from increased cellular subscription and usage would also contribute to an increased signalling gateway demand.
More subscribers and more usage both translate to more handoffs, HLR queries, SMS usage etc - all of which increase access to, and use of, the SS7 infrastructure.
VDC believes this usage increase is also a strong contributing factor to the markets projection of 9% CAGR for signalling transfer points.
According to Johnson: "While it is true the requirement for wireline circuit-switched SS7 infrastructure is either declining or at best slightly positive, VDC believes that the interaction between the existing infrastructure and new technology deployments will portend moderate growth for some segments of this mature market".
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