According to a new Allied Business Intelligence (ABI) report, “Voice Over DSL Integrated Access Devices: Customer Premise Equipment and Voice Gateway Markets to 2004,” the market for VoDSL equipment will rise from nearly nothing in 1999 to more than 2 million gateway ports shipped worldwide in 2004—a compound average annual growth rate of 258%.

Widespread deployment of DSL access multiplexers (DSLAMs), unbundling of the local loop, and few alternatives for serving small- and medium-sized offices will drive this growth. With VoDSL, a single copper pair can provide both data bandwidth and a number of voice lines. Voice calls are digitized, packetized, and compressed at the subscriber premises for transmission over the local loop. In the central office, data signals route onto data networks and voice transmissions are sent to a voice gateway that decompresses and depacketizes them into signals that can be sent through the PSTN.

“Voice over DSL is a good solution for service providers since it allows up to 16 voice lines to be derived from a DSL line,” says ABI Director of Broadband Research Marc Liggio. “Operators can offer small and medium-sized businesses service bundles at lower prices than current offerings.”

For details on the report, call ABI at (516) 624-3113 or visit