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Dell’Oro Group Forecasts PBX Sales to Reach $7.1 Billion in 2010

IP Lines to Deliver Nearly Two-Thirds of PBX Revenue

REDWOOD CITY, Calif. – August 02, 2006 – According to a recent report by Dell’Oro Group, the trusted source for information about the networking and telecommunications industries, total PBX revenues are projected to reach $7.1 billion annually in 2010. Driven by expanding demand for Voice-over-IP in the enterprise, sales of IP Lines are projected to reach $4.6 billion in 2010, a 24 percent compounded annual growth rate (CAGR).

“More enterprises we interviewed are advancing from pilot projects to company-wide implementations of IP telephony that will retire their installed base of traditional PBXs,” said Steve Raab, Director of IP Telephony Research for Dell’Oro Group. “Beyond simply capturing the operational benefits from converging their voice and data networks, these businesses also identify IP telephony as a basis for implementing productivity-enhancing communication solutions such as unified communications and fixed mobile convergence,” he added.

Hybrid IP/TDM PBXs are currently a majority of sales during the transition to IP telephony, because they are able to support both a business’s legacy TDM equipment and the new IP technology. Dell’Oro Group forecasts Hybrid IP/TDM PBX growth will slow over the next five years as an increasing number of businesses move directly to IP PBXs.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the IP Telephony Enterprise industry with tables covering manufacturers’ revenue, average selling prices, line (analog/digital and IP) shipments for IP PBX, Hybrid IP/TDM PBX, traditional PBX, traditional key systems, and IP telephones. To purchase this report, contact Margaret Miles at +1.650.622.9400 x225 or via email at Margaret@Delloro.com.

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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