Acme Packet Delivers Enterprise SIP Trunking

Services for Over 130 Service Providers

Updated: January 06, 2011

BURLINGTON, Mass., Mar 17, 2010 (BUSINESS WIRE) -- Acme Packet(R), Inc. /quotes/comstock/15*!apkt/quotes/nls/apkt (APKT 18.67, -0.08, -0.42%) , the leader in session border control solutions, today announced that 134 service providers in 43 countries are currently delivering SIP trunking services with its Net-Net(R) session border controllers (SBCs). This data is based upon an Acme Packet-conducted analysis of its more than 750 service provider customers worldwide. These service providers are currently in the early stages of their SIP trunking service delivery and they expect more significant enterprise adoption in 2010. This analysis and other industry data indicate SIP trunking is poised for substantial growth in 2010 as service providers look to meet enterprise demand for more cost-efficient means of delivering IP connections.

To better understand usage patterns and growth opportunities, Acme Packet grouped customer responses into standard categories: competitive local exchange carriers (CLECs), incumbent local exchange carriers (ILECs) and cable. Highlights from the study indicate that deployment of SIP trunks is increasing in each region as all types of service providers are adding it to their product portfolio. Growth in specific regions, however, is being driven largely by specific service provider types making Acme Packet believe that the SIP trunking market will be highly competitive for the next several years. Highlights of the survey reveal the following:

  • CLECs and cable operators in North America are deploying SIP trunks most aggressively. This increased competition is pulling the traditional ILEC into the market and paving the way for fierce competition as service providers aggressively leverage SIP trunking to win new customers and grow market share. As it stands today, CLEC deployments show a nearly 2:1 margin over ILECs in total SIP trunks deployed.
  • Europe shows the most diversity in deployments within the various service provider types with ILECs deploying slightly over 50 percent of all SIP trunks today. The report indicates that the European market will become as competitive as the North American market over the next several years as these deployments mature.
  • As expected, deployments in Central and South America have been driven by ILECs. The survey data indicates that the CALA region is likely to lag behind other regions in SIP trunking adoption based on its slow start.
  • Deployments in Asia are more evenly split between CLECs and ILECs, each showing a steady rise in total number of deployments.

Acme Packet's survey results lead the company to believe that a growing number of additional service providers will offer SIP trunking services. While not the initial use for SBCs in their networks, SIP trunking has the potential to be a key growth driver for adding SBC capacity in these networks in 2010. A leading analyst firm, Infonetics Research, also noted the growth trend in its report "VoIP and UC Services and Subscribers, Biannual Worldwide and Regional Market Size, Share, and Forecasts" from October 2009. Diane Myers, directing analyst, Service Provider VoIP and IMS, for Infonetics Research reported that IP connectivity for business VoIP is forecasted to grow from 8.5 million trunks worldwide in 2009 to more than 24.3 million trunks in 2013.

"While residential VoIP services have already hit the mainstream, we are beginning to see demand from enterprises to replace their traditional TDM-based circuits with IP," said Myers. "Given the important role SBCs play with SIP trunking in terms of securing network infrastructure, adding operational flexibility, as well as improving service flexibility, Acme Packet is well-positioned to help service providers maximize this opportunity."

"Roughly 20 percent of Acme Packet's service provider customers offer SIP trunking services today, and virtually all of our enterprise customers use our SBCs for secure, readily-interoperable SIP trunk connectivity," said Seamus Hourihan, Acme Packet's vice president of marketing and product management. "Our customers clearly see the value that offering SIP trunking services brings as part of a trusted, first-class IP interactive communications portfolio, and appreciate the critical role Acme Packet's SBCs play."

About Acme Packet

Acme Packet, Inc., the leader in session border control solutions, enables the delivery of trusted, first-class interactive communications--voice, video and multimedia sessions--and data services across IP network borders. Our Net-Net family of session border controllers, multiservice security gateways and session routing proxies supports multiple applications in service provider, enterprise and contact center networks--from VoIP trunking to hosted enterprise and residential services to fixed-mobile convergence. They satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks; and support multiple protocols--SIP, H.323, MGCP/NCS, H.248 and RTSP--and multiple border points--service provider access and interconnect, and enterprise access and trunking. Our products have been selected by more than 980 customers in 104 countries. They include 90 of the top 100 service providers in the world; and 11 of the Fortune 25.

Acme Packet, Inc. Safe Harbor Statement

Statements contained herein that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may relate, among other things, the growth of SIP trunking in 2010 or beyond, the enterprise demand for more cost-efficient means of delivering IP connections, whether the market in Europe will become as competitive as the North American market over the next several years, whether a growing number of additional service providers will offer SIP trunking services, whether SIP trunking may prove to be a key growth driver for adding SBC capacity in service provider networks in 2010, the number of trunks in 2013, whether the SIP trunking market will be highly competitive for the next several years, the benefits and features of sessions border controllers, the ability to facilitate service and support and to secure large enterprise networks, as well as Acme Packet's expected range and reach into new markets and its relationships with new customers, distributions channel and product partners. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: difficulties expanding its customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulty developing new products; difficulty in relationships with vendors and partners; higher risk in international operations; difficulty managing rapid growth; difficulty managing its financial performance; its ability to hire and retain employees and appropriately staff its operations; its cash needs; the impact of new accounting pronouncements and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company's recent filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings.

SOURCE: Acme Packet, Inc.

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