IP PBX Revenue Up 23%

BOSTON -- The enterprise telephony market continues its steady transition from circuit switching technology to packet switching technology, with worldwide TDM system revenue falling 15% and IP PBX revenue rising 23% between 2004 to 2005, according to Infonetics Research's latest Enterprise Telephony report.

Together, worldwide TDM and IP PBX systems revenue totaled $8.1 billion in 2005, a 12% increase over 2004, and will grow 43% between 2005 and 2009, when it will reach $11.6 billion as organizations continue to move to VoIP.

In that five-year span, IP PBX revenue is forecast to jump up 82% while TDM revenue will plunge 88%.

For the quarter, PBX/KTS revenue totaled $2.2 billion in 4Q05, up 1% over 3Q05, and 10% higher than a year ago. TDM system revenue was down 6% in 4Q05, and IP PBX revenue nudged 3% higher than last quarter.

"The PBX market came in at our expectations in 2005, and from a global perspective is doing very well," said Matthias Machowinski, directing analyst at Infonetics Research. "Worldwide revenue growth accelerated in 2005, although it's mostly coming from EMEA, Asia Pacific, and CALA. North America lost revenue share in 2005 as things slowed down here, showing just 4% revenue growth for the year."

Infonetics Research Inc.