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Arlington, Virginia -- Enterprise spending on private branch exchange (PBX), key telephone systems (KTS) and voice...

May 14, 2002  

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Arlington, Virginia — Enterprise spending on private branch exchange (PBX), key telephone systems (KTS) and voice processing equipment will account for a total of US$11.5 billion this year, according to a recent study by the Telecommunications Industry Association’s (TIA).

The association’s 2002 Telecommunications Market Review and Forecast reports that PBX spending will reach US$4 billion, KTS will top US$1.6 billion and voice processing equipment will hit US$5.9 billion in 2002.

TIA says that despite double-digit declines experienced in 2001 in the traditional PBX and KTS hybrid markets, and a slight decrease in the voice processing equipment market, total revenues from voice processing equipment sales are now higher than in the mid-1990s, when the market was experiencing high growth. For example, in 1995 enterprises spent US$2.3 billion on PBX equipment, US$2.3 billion on KTS equipment and US$4.7 billion on voice processing equipment.

The study reports that enterprises continue to dig into their pockets, particularly for applications that will make them more profitable. For example, the report shows that Internet protocol (IP) PBXs and IP equipment posted large increases as the enterprise migrated towards convergence of voice and data systems to support customer-care solutions.

TIA predicts enterprise spending on voice systems equipment will reach $15 billion in the next few years — with PBX, KTS and voice processing equipment markets growing at 5.1 per cent, 6 per cent and 6.2 per cent, respectively.

“By 2004 and 2005, the replacement cycle will kick in for voice equipment, as companies replace their legacy equipment or relocate, and the benefits of implementing IP PBXs become more tangible,” says TIA President Matthew Flanigan. “TIA expects large increases in voice systems in those years, driven by IP system sales.”