BOONTON, NJ – Total worldwide sales revenue for telecommunication gateways and session border controllers is expected to increase at a compounded rate of nearly 13% during the next five years, says Insight Research.

This specialized equipment enables traditional phone networks to interconnect with next-generation network services that make extensive use of the Internet. During 2008, nearly $2 billion worth of gateway technology will be sold in global markets. By 2013, sales of new gateway gear will increase to $3.5 billion annually, says the firm.

While global gateway sales will increase to nearly 13% during the forecast period, hybrid-fiber coax gateways, SIP gateways, and session border controllers will buck trends and are expected to exhibit sales revenue growth rates in excess of 30%, says Insight.

"The next-generation network, which will make extensive use of IP and web services is still years away from generating serious revenue, and in the meantime carriers are not about to fork lift out the infrastructure that makes them money today," said Robert Rosenberg, Insight’s president.

"Gateways form the link between today's revenue-generating services and what the carriers will be building to generate their future revenue streams, so we expect the telecommunications gateway market to continue growing for at least the next five years," Rosenberg added.