Worldwide IP PBX Market Up 10%; Nortel Leads in North America, Avaya and Cisco Battle for Second

Infonetics Worldwide PBX/KTS revenue totaled $2.1 billion in the third quarter, up 7% from the previous quarter, and 17% higher than a year ago Quarterly revenue is forecast to increase 9% to $2.3 billion by third quarter of 2006, as the market continues to benefit from an improving economy and the overall move toward VoIP technology.

Nortel leads the recovering North American IP PBX market, and Avaya and Cisco are engaged in an epic battle for second place, with Cisco steadily encroaching on Avaya's leadership position, and briefly surpassing them in the second quarter of this year. In the third quarter, however, Avaya increased line shipments by 23%, compared to Cisco's 2%, which put some distance between the two, at least in the interim.”

3Q05 Market Highlights

• IP PBX revenue jumped 10% between 2Q05 and 3Q05, reaching almost $1.7 billion

• Hybrid PBXs made up most of the IP PBX growth this quarter, as pure IP revenue was up only 1%

• The top PBX/KTS system vendors in 3Q05 for total lines shipped are Nortel, Avaya, Siemens, Alcatel, and NEC

Enterprise Telephony Publ 20051201