Carrier VoIP/IMS Market up 51% Worldwide

IMS Spending Expected to Accelerate Further Growth

According to recently published reports by Synergy Research Group, Softswitch and VoIP Media Gateways, today's cornerstones of IMS, grew over 50% worldwide. Regionally, APAC contributed strongest growth of 62 percent and was followed by EMEA and North America (NAM) with growth rates of 60 and 48 percent, respectively.

"Introducing voice to IP has radically changed the future of wired and wireless networks," said Jeremy Duke, President & CEO at Synergy Research Group. "The success of VoIP has already created shifts in market leadership. Now there is a heightened sense of urgency for those vendors who need to strengthen their IMS offerings to pursue partnerships or acquisitions."

IP Multimedia Subsystem (IMS) is one of the largest opportunities facing the Networking and Telecom industry today. Synergy believes IMS will significantly change the telecom industry by enabling new market entrants to overcome barriers of entry and by forcing established players to merge or partner.

Nortel is the most successful of the established telecom vendors to embrace the migration of Voice to IP. Nortel's early investments have resulted in a #1 market share position in Carrier Packet Voice in both Worldwide and NAM in Q1 2006. Sonus and Cisco continue to be the strongest challengers posting substantial growth in NAM and EMEA, respectively. Recent acquisitions and mergers by Ericsson/Marconi, Lucent/Alcatel, and Nokia/Siemens (SP Communications Division) are sure to put pressure on current market share leaders and keep the emerging IMS market dynamic.

Q1 2006 NAM Carrier Packet Voice Market Share Rankings
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            Position          Y-Y Growth

Nortel          1                59.5%

Sonus           2                57.9%

Cisco           3                 1.8%

Nuera           4                40.0%

Lucent          5                 5.2%



Q1 2006 EMEA Carrier Packet Voice Market Share Rankings
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            Position          Y-Y Growth

Cisco           1               184.4%

Alcatel         2                57.2%

Nortel          3                60.2%

Siemens         4               -66.9%

Ericsson        5                60.1%

About the Reports

Synergy's Q1 2006 Service Provider VoIP Market Share reports are available for purchase at www.srgresearch.com or by contacting Heather Wilson at 775-852-3330. Synergy provides separate Market Share and Forecast reports for Service Provider VoIP for Worldwide, U.S., EMEA, UK, APAC, and LAM regions.

About Synergy Research Group

Synergy Research Group is regarded as the definitive authority for networking and telecom market research by Wall Street firms, leading equipment vendors, and component manufacturers. Synergy can be found at www.srgresearch.com

The contents of this press release represent SRG's interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.

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