In 1Q17, the market for IMS equipment (wireline + wireless/VoLTE) fell 21% Q/Q $644 M. The sequential decline was largely due to seasonal factors. The market was up 19% compared to the same quarter in 2016. The wireless/VoLTE segment contracted 20% Q/Q $519 M and accounted for 81% of the entire market. The segment was up 26% compared to 1Q16. The wireline segment decreased 27% Q/Q and 4% Y/Y to $125 M and accounted for the remaining 19% of the market. In 2016, the total market grew by 16% to reach $2.6 B, as wireless/VoLTE investments grew by 14% to $2.0 B and, after two years of largely flat results, wireline spending rebounded to grow 24% to $612 M. We expect that the continued migration away from legacy circuit- and NGN-based systems will continue in 2017 and that the market will grow by 16% to $3.1 B as the wireline and wireless/VoLTE market grow by 6% and 19%, respectively.