SOURCE: Synergy Research Group

May 19, 2006 15:21 ET

IP Telephony Continues to Lead Enterprise Voice Market

IP Telephony Sales Grow 28.5 Percent Year-Over-Year & IP Phone Sales Grow 31 Percent Year-Over-Year

RENO, NV -- (MARKET WIRE) -- May 19, 2006 --According to a recently published report by Synergy Research Group, the definitive authority for networking and telecom market research, the worldwide Enterprise Voice market decreased 6.3 percent sequentially and increased 3.8 percent year-over-year.

"Avaya was the only large vendor to post positive growth in the Enterprise Voice market," said Ryan Olsen, Analyst at Synergy Research Group. "Mitel, ShoreTel and Sphere posted the strongest quarter of the mid/smaller vendors, which once again shows the growth opportunity is beginning to touch all players who have invested and prepared for IP migration."

Statistics show IP Telephony is gaining momentum. Enterprise IP Telephony was driven by the continued migration of Enterprise Voice networks to next generation IP Telephony. Enterprise IP Telephony sales increased 28.5 percent and Avaya retained the number one market share ranking. IP Phones increased 31 percent year-over-year and Cisco retained the number one market share ranking.

In a combination of Q1 seasonality and technical displacement, Synergy Research measured a sequential decrease in TDM (PBXs and KTS) for the quarter at -16.2 and -2.4 percent respectively.

Table 1. Q1 2006 WW Enterprise Voice Market Shares

        Position        Q-Q Growth

Cisco   1               - 0.2%

Avaya   2               + 1.2%

Nortel  3               - 15.7%

Alcatel 4               - 16.1%

Siemens 5               - 13.0%


Table 2. Q1 2006 WW Enterprise IP Telephony Market Shares

        Position        Q-Q Growth

Avaya   1               + 7.0%

Cisco   2               - 3.5%

Alcatel 3               - 17.1%

Nortel  4               - 4.5%

Mitel   5               + 13.0%
Of notable mention, Avaya, Mitel, NEC, ShoreTel and Sphere posted the strongest growth in Enterprise IP Telephony sales.

About the Report

Important Note: Synergy's Worldwide Enterprise VoIP Market Share report includes 42 unique tables and 20 unique graphs that detail the Enterprise Voice landscape, product definitions and granular market segmentation. Synergy also provides separate Market Share and Forecast reports for Enterprise VoIP and Service Provider VoIP for U.S., EMEA, U.K., APAC, and LAM regions.

Synergy reports are available for purchase at www.srgresearch.com or by contacting Heather Wilson at 775-852-3330.

About Synergy Research Group

As a highly respected and trusted source for worldwide and regional market share and forecasting reports, Synergy offers a wide breadth of quarterly market research programs to Wall Street firms, equipment vendors, and component manufacturers. Synergy can be found at www.srgresearch.com

The contents of this press release represent SRG's interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.

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