BOSTON, MA -- (MARKET WIRE) -- 02/28/06 -- 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."

Highlights

--  In the overall PBX/KTS systems market, Nortel, Avaya, Siemens,
    Alcatel, and NEC (in that order) lead in worldwide 2005 line shipments
--  Nortel leads the North American IP PBX market in line shipments for
    2005, followed by Avaya and Cisco, but it's a close race among all three
--  Alcatel leads the IP PBX market in EMEA in 4Q05 and 2005, followed by
    Siemens
--  Cisco dominates the market for IP phones with 42% unit market share in
    2005
--  Hybrid PBXs accounted for 65% of 2005 PBX/KTS revenue, TDM 23%, and
    pure IP 12%; hybrids and pure IP will continue to increase through 2009 at
    the expense of TDM
--  44% of 2005 PBX/KTS systems revenue came from EMEA, 32% from North
    America, 19% Asia Pacific, and 5% CALA
    

Infonetics' report tracks IP deskphones, IP softphones, TDM PBX/KTS systems, and hybrid and pure IP PBX systems in North America, EMEA, Asia Pacific, CALA, and worldwide. Companies tracked include 3Com, Aastra, Alcatel, Avaya, Cisco, Ericsson, Inter-Tel, Mitel, NEC, Nortel, Polycom, ShoreTel, Siemens, snom, Sphere, Swyx, Toshiba, Vertical Communications, Zultys, and others.

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

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. We provide a complete view of the market through constant interaction with equipment manufacturers, service providers, end-users, chip and component manufacturers, sales channels, and the financial community. We offer quarterly 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
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