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Enterprise Communications Association Market Report Paints Rosy Future for Converged Communications Systems

Posted on: Wednesday, 23 March 2005, 09:00 CST

Strong Customer Demand Forecast for Large IP Telephony Systems, New Communications Devices, and Professional Services

Customer demand for premises-based converged communications systems will continue to be strong into the next decade, according to the new 2005 ECA Converged Communications Systems Market Report. Shipments of converged communications system IP stations are forecast to increase at an average annual growth rate of almost 19 percent between 2004 (3.3 million) through 2012 (13.25 million). Estimated revenues for core KTS/Hybrid and PBX systems are forecast to increase almost 40 percent during this time period, from about $12.55 billion to more than $17 billion. Declining system prices and shrinking maintenance revenues will be offset by strong growth of professional services revenues.

The ECA market report includes several important research findings about how IP telephony is changing the way many enterprise customers purchase, configure, and implement their private communications systems and networks. For example, customers with multiple location requirements are replacing a few or many standalone systems (KTS/Hybrids or PBXs) with a single large IP-PBX solution equipped with remote IP telephones and/or survivable media gateways. This is unwelcome news for manufacturers and dealers of small system solutions, because shipments of KTS/Hybrids are forecast to decline during the 2004-2012 time period, but good news for large IP-PBX system vendors.

Another key report finding is the changing way station users will interact with their converged communications system. Although desktop telephone instruments will remain the primary type of voice terminal configured behind a converged communications system, it is forecast that computer-based softphones and 802.11 WLAN devices (handsets and PDAs) for mobile communications and teleworking applications will be deployed by a growing number of customers. The two evolving nontraditional voice terminal types will collectively account for about 33 percent of total IP station shipments by 2012, based on report forecast data.

The report's focus is on core IP telephony systems, KTS/Hybrids and PBXs, but integrated and peripheral IP telephony applications are also discussed in a State of the Market essay section. Detailed market forecasts cover annual shipment and installed base data (systems and stations), segmented by technology platform (TDM/PCM and IP) or station cell size. Forecasts also include end user market revenues by three categories: product; installation & maintenance; and customer services.

The ECA market report is designed to be of interest to a wide range of readers with interests in the converged communications system market, ranging from system sellers and buyers to Wall Street analysts and investors.

The ECA market report was researched and edited by noted industry analyst Allan Sulkin, president of TEQConsult Group (www.teqconsult.com) and a member of the ECA Board of Directors. Sulkin has more than 25 years of enterprise communications market experience, consults with leading equipment suppliers and end users, and has published numerous industry research and forecast studies. He is also the author of PBX Systems for IP Telephony (McGraw-Hill Professional), and a program director/featured speaker for the annual MediaLive/BCR VoiceCon conference and exhibition.

ABOUT ECA

The Enterprise Communications Association (ECA) promotes the growth of healthy markets and effective sales channels for IP telephony and other converged voice, video and data communications solutions deployed in the enterprise. For more information on ECA member services, visit the ECA web site at http://www.encomm.org.

ECA members pay $495 per single copy of the 2005 ECA Converged Communications Systems Market Report. Non-members pay $995. Volume discounts are available.

Complimentary copies are available to qualified news media representatives. Access to an audio recording of the March 23 media briefing is also available.

Source: Business Wire

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