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Dell'Oro Group Forecasts IP PBX Sales to Reach $2 Billion in 2010

IP PBX Leads Enterprise Voice Market Growth

REDWOOD SHORES, Calif. – January 31, 2006 – According to a recent report by Dell’Oro Group, the trusted source for information about the networking and telecommunications industries, IP PBX sales are forecasted to reach $2 billion in 2010, nearly a three-fold increase from 2005. Combined IP PBX and Hybrid IP/TDM PBX sales are projected to gain share steadily over traditional PBX and key systems.

"The conversion to VoIP is the dominant factor in the enterprise voice market over the next several years," said Steve Raab, Director of IP Telephony Research for Dell’Oro Group. "Modernizing the installed base of traditional PBX technology to IP telephony requires coordinated investment in data networking and enterprise voice equipment. During this technology transition, Hybrid IP/TDM PBXs that embody newer IP and legacy TDM technology will represent a majority of sales," added Raab.

Dell'Oro Group forecasts sales of IP telephones to exceed $4 billion in 2010, driven by businesses adopting IP Centrex service and upgrading PBX handsets to IP telephones. In addition, consumers of residential Voice-over-Internet-Protocol (VoIP) are expected to adopt wireless LAN phones and soft phones.

About the Report

The Dell’Oro Group IP Telephony Enterprise 5-Year Forecast Report offers complete, in-depth coverage of the market, with tables detailing revenue, line shipment, and average selling price forecasts for IP PBXs, traditional PBXs, traditional key systems, and IP telephones.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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