IEC North America 1Q06 Report: IP Telephony’s Dominance of Business Communications Market is Accelerating

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The InfoTrack for Enterprise Communications (IEC) 1Q North America Report reveals IP telephony continues to dominate business communication-line shipments. Sixty-three percent of 1Q06 U.S. line shipments were attributed to IP, compared with 52 percent a year ago, representing 27-percent growth.

The InfoTrack for Enterprise Communications (IEC) 1Q North America Report reveals IP telephony continues to dominate business communication-line shipments. Sixty-three percent of 1Q06 U.S. line shipments were attributed to IP, compared with 52 percent a year ago, representing 27-percent growth.

In the past two years, PBX shipments have plummeted, representing only 9 percent of 1Q U.S. line shipments, down from 17 percent a year ago. New system-line shipments accounted for only 23 percent of PBX shipments whereas, a year ago, new line shipments accounted for 47 percent.

“With new PBX systems representing only 2 percent of 1Q U.S. line shipments, the PBX opportunity is down to retention of existing customer sites. Current PBX installed base is a target for IP substitution,” says Susan Hobart, vice president and senior program director for IEC.

She continues, “Down 7 percent from a year ago, Key/Hybrid has experienced some volatility, but it continues to be an attractive near-term option for small businesses due to IP and wireless enablement features and competitive pricing.”

Key/Hybrid systems represent 28 percent of 1Q06 U.S. line shipments, down from 31 percent for the same period a year ago.

The 1Q North America Report covers the following areas:

  • PBX, Key, IP U.S. and Canada business communication system/line shipments and market shares,
  • Distribution of line shipments by target market size,
  • Analysis of 1Q U.S. and Canadian business communication system results, and
  • Shipment and revenue forecasts through 2010.

For more information on the IEC 1Q NA Report, please visit

http://www.telecomweb.com/marketresearch/iec1qna/ or contact Craig Born, (973) 602-0123.

About InfoTech

InfoTech, part of The Telecom Intelligence Group, publishes quarterly tracking and analysis reports on business communications systems and applications as part of its InfoTrack for Enterprise Communications (IEC) program. Its next report, analyzing First Quarter 2006 Global shipments and market share, will be published later this month, and will be followed by the Global report early in March. The North America report addresses PBX, Converged, Key, Messaging and ACD systems, Centrex and Hosted IP, and includes a five year revenue forecast; installed base history and projections; and shipments and share by line size segment. The Global Report forecasts and tracks PBX, Converged and Key shipments globally, by region, major Western Europe and Asia-Pacific country and line size segment.

About The Telecom Intelligence Group

The Telecom Intelligence Group includes market intelligence provider InfoTech; TelecomWeb and TelecomWeb news break; newsletters Wireless Business Forecast, Broadband Business Forecast, Telecom Policy Report and Inside Digital TV; tariff consultancy Tarifica; and the Web-based business-telephony-product database TelecomTactics. For more information, please visit http://www.TelecomWeb.com.

Contacts:

Sharon Valencik, research & marketing director

Susan Hobart, vice president and IEC program director

1-800-610-3109

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Sharon Valencik
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