Press Release

Sonus, Nortel, Motorola, Tekelec and Cisco Benefit from Strong Domestic VoIP Momentum

Scottsdale, Arizona – (November 22, 2004) According to Synergy’s latest report, Q3 2004 U.S. Service Provider VoIP Market Shares, service provider VoIP equipment increased 48.8% sequentially and 149.5% year over year. The U.S. VoIP market continues to be driven by Public Voice networks migrating from circuit technology to VoIP as well as consumer voice services being delivered over broadband networks.

“In the U.S., residential VoIP subscribers are increasing at a surprising rate, all at the detriment of traditional phone services,” said Jeremy Duke, President & CEO of Synergy Research Group. “Renegade VoIP phone service providers such as Vonage have put a fire under the traditional local and long distance phone companies who in turn are now responding in force with their own VoIP services.”

Synergy has been measuring strong demand by the Wireless Operators, whereby MSCs are being interconnected over packet-based networks.

The report shows the synergistic demand generated by circuit networks migrating to VoIP, consumer VoIP services being introduced, and Wireless Operators incorporating packet into their operations did well for sales of VoIP media gateways and softswitches. The most interesting standout in the product mix was the large number of Class 5 subscriber softswitch licenses sold in the quarter.

Table 1. Q3 2004 U.S. VoIP Equipment Market Share Ranking
1. Nortel
2. Sonus
3. Cisco
4. Tekelec
5. Lucent

Table 2. Q3 2004 U.S. Softswitch Market Share Ranking
1. Nortel
2. Sonus
3. Motorola
4. Teklelec

This 77 page report containing 38 U.S. Market Share tables is available for purchase at www.srgresearch.com.

Synergy Research Group (SRG) is a market research firm, which specializes in quarterly market analysis, market share, forecasting, and strategic consulting. SRG offers a wide breadth of market research services to the equipment manufacturing, semiconductor, and financial communities. Synergy can be found at www.srgresearch.com.

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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.