TDM and VOIP

02.27.06
Doug Mohney

Worldwide IP PBX revenue has risen 23 percent over the last year, while TDM system revenues are down 15 percent, according to the latest Enterprise Telephony report by Infonetics Research (www.infonetics.com).

Together, worldwide TDM and IP PBX system revenue totaled $8.1 billion in 2005, a 12 percent increase over 2004. Over the next five years, revenues are expected to increase at a rate of 43 percent, reaching $11.6 billion as organizations continue to migrate to VoIP. IP PBX revenue will jump up 82 percent while TDM revenue will drop 88 percent.

According to the report, Nortel, Avaya, Siemens, Alcatel, and NEC lead in worldwide 2005 line shipments of PBX/KTS systems. Nortel leads the North American IP PBX market in line shipments for 2005, followed by Avaya and Cisco, but it's a "very close race." Cisco dominates the market for enterprise IP phones with 42 percent market share in 2005. "Hybrid" PBXes accounted for 65 percent of 2005 PBX/KTS revenue, TDM 23 percent, and pure IP 12 percent. Hybrids and pure IP will continue to increase through 2009 while TDM continues to decline.