Service providers have been carrying out a transformation of their Class 5 TDM networks to IP as increased demand for landlines warrants upgrades, Teral says. Carriers still want to carry out that transformation, but will wait until they need added capacity, he says.

Cable providers that have been planning to adopt new cable voice infrastructure will also likely put their plans on hold, since customers tend to retreat to basic cable services during recessions, not upgrade to more services, he says.

Some of the decline in sales of VoIP infrastructure can be blamed on the completion of major projects by Bell Canada, Verizon and others, he says.