Dell'Oro Group Reports IP Phone Revenues Exceed $750 Million in the Third Quarter

Business Wire, Nov 29, 2007

Cisco Gains Share in Line Shipments

REDWOOD CITY, Calif. -- A recently published report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals that worldwide IP phone revenues exceeded $750 million in the third quarter of this year, growing more than 40 percent compared to the same period last year, due in large part to strong demand for IP lines to the desktop. The report indicates that IP phone revenues are becoming a larger part of a vendor's revenue stream as customers are opting for more expensive IP phones instead of keeping or replacing their older digital phones.

"IP Phone growth accelerated in the third quarter as large enterprises that have completed the first phase of revamping their voice infrastructure by upgrading their call control to IP are now entering the second, multi-year phase of upgrading users' desktops to IP phones," commented Alan Weckel, Senior Analyst at Dell'Oro Group. "Vendors, such as Avaya, Cisco, and Nortel that are closely integrating voice into an enterprise's business processes - such as deploying Unified Communications - are seeing the greatest uptake in IP phone adoption," Weckel added.

The report also reveals that Cisco became the third largest vendor of worldwide line shipments in the quarter by surpassing Siemens, despite Siemens benefiting from a strong fiscal year-end quarter. Nortel and Avaya remained the top two vendors of worldwide line shipments.

About the Report

The Dell'Oro Group IP Telephony Enterprise Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, line (analog/digital and IP) and unit 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, please contact Margaret Miles, 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 enables 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.