IP telephony surge drives enterprise telephony market

Voice&Data staff

The enterprise telephony market continues to see sustained growth in the Asia–Pacific region, thanks to the high uptake of IP-based telephony systems, according to analyst firm Frost & Sullivan.

A new report from the firm found that the market accumulated revenues of almost US$2.73 billion in 2007. This figure is forecasted to reach US$4.1 billion by the end of 2014.

IP telephony systems accounted for more than half (53.9%) of the total revenues in 2007. The remainder of the market comprised PBX (25.7%), KTS (18.5%) and wireless PBX (1.9%).

IP telephony’s contribution to this market is expected to grow to 59.2% by the end of 2008, with an expected value of US$1.76 billion — up from US$1.47 billion.

The main thrust behind the increased IP telephony uptake is its ability to unify legacy communications systems.

“Tools such as presence, unified messaging and peer-to-peer technologies that ride on IP systems have been some of the reasons for the early deployments, and will likely continue to drive wider adoption of IP telephony,” said Shailendra Soni, an analyst at Frost & Sullivan.

In Australia and New Zealand, IP telephony already makes up more than 60% of the market, Soni said, with the biggest drive from the banking, financial services and insurance sector.

But conventional time-division multiplexing (TDM) systems still dominate the enterprise telephony market in Australia and New Zealand.

And the biggest

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barrier to IP telephony uptake in the region is the issue of legacy equipment, including TDM.

“Asia–Pacific has a very large amount of legacy TDM-based infrastructure, making it difficult and costly, particularly for SMBs, to upgrade or replace the existing systems," Soni said.

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