T3i Group Finds Global Enterprise Telephony Market Shifting, as Local Providers Gain Channels and Share

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According to a T3i Group research report, global enterprise telephony system revenues increased 1% in the second quarter of this year, but were down 9% from the same period a year ago, to $3.8 billion. Despite the market slowdown, some local and global vendors are gaining in specific markets.

According to a T3i Group research report, global enterprise telephony system revenues increased 1% in the second quarter of this year, but were down 9% from the same period a year ago, to $3.8 billion. Despite the market slowdown, some local and global vendors are gaining in specific markets.

In Asia-Pacific (APAC), local manufacturers outperformed many of the global vendors. T3i Group's InfoTrack for Enterprise Communications program found that enterprise telephony system revenues were down 1% from the first quarter of this year, but local APAC manufacturers as a whole were up 9%. A few regional stars are emerging. With channel partners throughout APAC, India-based Matrix has shifted from traditional telephony technology, particularly key systems, to predominantly small IP Telephony systems. GC Sci-tech, located in China, also ships throughout APAC. Both vendors exceeded 20% growth over the first quarter of this year. Cosun is among the largest of the regional vendors, and uses more than one Chinese manufacturer to source its systems. They are building partnerships throughout APAC and in emerging markets in Turkey and Europe. Among global vendors, some also experienced growth in APAC, notably Alcatel, Cisco and Nortel.

InfoTrack reported Caribbean-Latin America (CALA) regional business telephony system revenues overall to be up 7% from the first quarter, with excellent growth for two regionally-focused vendors. Intelbras and LG-Nortel led CALA with double digit growth, and now represent 10% of the region's shipment revenue. Intelbras, headquartered in Brazil, began selling traditional PBX products, but now ships IP-PBX products to other South American countries as well. LG-Nortel is a joint venture between LG and Nortel; their recent entry in the Brazilian market is a version of LG's key system sold in S. Korea. Global vendors Siemens, Avaya and Cisco also gained in CALA.

"Regional performance is an accumulation of country strategies -- channel relationships, incumbents and government regulations in particular," said Robert Olson, Senior Voice Technology Analyst at T3i Group. "The race for partners has gained velocity, particularly as the small and medium business markets develop and network infrastructure becomes available."

While EMEA (Europe, Middle East, and Africa) business telephony system revenue declined 1% compared to 1Q08, Karel and LG-Nortel together grew by over 25%. Karel gained in its home-country of Turkey, and has extended its reach into Russia and other Eastern European countries, the Middle East and Africa, as well as a few countries within APAC and Western Europe. Asterisk software-based telephony systems grew tremendously in this period, as well. "Asterisk is a very popular solution in Russia," commented Olson, "as the open source technology can be downloaded and used in locally manufactured servers for affordable functionality."

About the InfoTrack for Enterprise Communications Program

InfoTrack for Enterprise Communications (IEC) is a continuous market intelligence program that tracks business communication systems revenues, shipments and market share globally. IEC databases and models are used to track, analyze and forecast line and system shipments, installed base, market share, revenues by size and technology, pricing and industry trends. For more information about the IEC program, please visit:

http://www.t3igroup.com/marketresearch/enterprisecomm/IEC/ or contact Susan Hobart, shobart@t3igroup.com or 973/602-0127.

About T3i Group LLC

T3i Group LLC provides market research, data, analysis, and consulting and advisory services to the telecommunications industry. It has clients in 46 countries and conducts its business through four operating units: InfoTrack, which publishes reports that analyze shipment, revenue, market share and other pertinent data of importance to telecommunications equipment manufacturers; TelecomTactics, which maintains a database of the features and functionality of major telephony systems; Tarifica, which maintains a database of pricing-related information covering 400 telecommunications carriers operating in 130 countries; and TelecomWeb (http://www.t3igroup.com), which is a content provider with an editorial staff that authors and posts telecommunications-industry news stories every business day. The site also serves as T3i Group's primary delivery mechanism for distributing its reports, analyses and data to subscribers.

T3i Group LLC is headquartered in Parsippany, NJ, with additional offices in New York City, London, England and Cherry Hill, NJ.

Press Contact:
Debra Baker
301/905-7703
dbaker at t3igroup dot com

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