IP PBX systems support efficient voice communication that improve the circuit switch end to end connection, by sending conversations as packets over the Internet. Voice over IP is implemented as a system that attaches to a router and supports the transfer of voice signals as data in an IP network.

VoIP is anticipated to have 60 percent penetration in enterprise markets by 2008. Revenue from worldwide IP-telephony products was 55 percent higher in 2005 over 2004. VoIP competition comes from numerous companies besides Cisco, 3Com, Nortel, Avaya, Mitel, NEC, and Siemens.

Voice over Internet protocol (VoIP) can be implemented in two ways: calls can originate from the traditional TDM circuit switched technology, or originate from an Internet protocol router. IP to TDM and TDM to IP VoIP are very different.

Voice over Internet Protocol (VoIP) technology is emerging as a real business solution for telecommunications carriers and enterprise customers. IP telephony is now reaching a point of maturity in the market, backed by increasing alignment among service providers and technology solutions providers and growing interest among leading-edge enterprise customers.

IP telephony is about improving the utilization of the Internet as a channel and about having a global reach within the eco system of the enterprise. Fortune 1000 customers are across the globe in vertical markets such as hospitality, education, government, and healthcare.

The converged voice / data PBX applications mean that the voice networks transition to data networks. PCs interconnected to the Internet on LANs worldwide are being connected to the networks so that the PC is used as a voice terminal. Traditional handsets may also serve as a VoIP terminal as they become VoIP enabled. IP voice terminals are set to replace traditional handsets.

IP PBX markets at $6.0 billion in 2005 are expected to triple to $19.5 billion by 2011. Markets are growing in response to the need of the enterprise to have more efficient networks that can be administered from the router.

Companies Profiled
Siemens Avaya Cisco Systems Alcatel NEC Nortel Concerto Software Contact Center Solutions ShoreTel SpectraLink Mitel Inter-Tel Ecuity NetFabric Four Loop Technologies Spherecom	Covad AltiGen Qovia AnchorPoint Apparent Networks Empirix Toshiba Applied Voice & Speech Technologies (AVST) Iwatsu ESI Teltronics Esna Technologies Vertical 3Com Pingtel Mitel Popular Telephony Asterisk

Report Methodology

This is the 272nd report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in-depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.