TDM PBX slide accelerates, IP PBX posts big gains, bringing 2006 enterprise telephony market up 9%

Market Wire, February, 2007

Traditional TDM PBX phone systems continue their steady decline in popularity, evidenced by a 22% drop in worldwide TDM PBX manufacturer revenue between 2005 and 2006, while IP PBX phone system sales continue to surge, growing 18% in the same period, says Infonetics Research in its latest "Enterprise Telephony" report.

The strength of IP PBX equipment sales buoyed the overall enterprise telephony market to a 9% gain in 2006, reaching $8.9 billion worldwide.

"The PBX market had another good year, with lines posting double-digit growth for the third year in a row," said Matthias Machowinski, directing analyst at Infonetics Research. "On the market share front, the big story continues to be Cisco, the only company with significant market share gains in 2006, contributing almost half of the overall market growth for the year. Though Cisco is still fifth in the worldwide market, they moved from second to first place in the North American IP PBX market this year, not surprising given they came out on top as the preferred VoIP equipment supplier in our 'User Plans for VoIP' study."

Market Highlights

--  Annual worldwide PBX/KTS equipment revenue is forecast to increase 33%
    between 2006 and 2010, from $8.9 billion to $11.8 billion
--  In 4Q06, the worldwide PBX/KTS market decreased 2% sequentially, but
    was up 4% over the same period a year ago
--  46% of worldwide PBX revenue came from the EMEA region, 32% from North
    America, 18% from Asia Pacific, and 6% from CALA in 4Q06
--  Siemens leads in the growing worldwide IP PBX market in terms of lines
    shipped in 2006, followed by Nortel and Alcatel-Lucent; Nortel leads in
    line market share in 4Q06, followed by Siemens
--  Cisco maintains its strong lead in IP deskphone and IP softphone
    sales, accounting for almost half the units shipped worldwide in 2006
    

Download sample data from the reports at www.info.infonetics.com . For sales, contact Larry Howard, vice president, at larry@infonetics.com or 1 (408) 583-3335.

Infonetics Research ( www.infonetics.com ) is the premier international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Press Contact: Matthias Machowinski Directing Analyst, Enterprise Voice & Data Infonetics Research (781) 933-9868 Email Contact