Dell'Oro Group Forecasts IP PBX and Hybrid IP/TDM PBX to Reach $6.1 Billion in 2009; IP Telephony Rapidly Expanding in the Enterprise PBX Market

Business Wire, August 9, 2005

REDWOOD CITY, Calif. -- According to a newly published Dell'Oro Group report, IP telephony has become the technology of choice in the PBX market. Sales of IP PBX and Hybrid IP/TDM PBXs are forecasted to reach $6.1 billion in 2009, an 11 percent compound annual growth rate. Dell'Oro Group projects IP PBXs and Hybrid IP/TDM PBXs, which represented only half of the lines shipped in 2004, will comprise almost 88 percent of lines shipped by 2009, taking share from traditional TDM systems.

"Hybrid IP/TDM PBXs are currently the most popular since they allow businesses to take advantage of IP telephony capabilities, while preserving their existing investment in TDM-based lines and digital telephones," said Steve Raab, Director of IP Telephony Research at Dell'Oro Group. "While we forecast that Hybrid IP/TDM PBXs will represent a majority of sales over the next five years, sales of pure IP PBXs will achieve the highest growth rates."

According to the Dell'Oro Group report, the transition to Voice over Internet Protocol (VoIP) on the business desktop is preceding more slowly, with TDM line shipments leading IP lines sold to support IP phones until 2009. The adoption of IP phones is being slowed since businesses must upgrade their LANs to add capabilities such as Power over Ethernet in order to use VoIP.

About the Report

The Dell'Oro Group 5-Year Forecast Report offers a complete overview of the IP Telephony Enterprise market with tables covering manufacturers' revenue, average selling prices, line (analog/digital and IP) shipments for IP PBX-large and small, Hybrid IP/TDM PBX-large and small, traditional PBX, traditional key systems, and IP telephones. To purchase this report call 1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at 1.650.622.9400 or visit www.DellOro.com.