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PBX and IP-PBX U.K. Market Drops to Record Low

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June 12, 2009

PBX and IP-PBX U.K. Market Drops to Record Low

By Amy Tierney, TMCnet Web Editor

The U.K. telephony market suffered another weak quarter after shipments plunged by more than a third in the first quarter, according to a marketing consultancy service provider.  And if the trend continues, the industry could be on pace to experience its worst year since 1998.

In “The U.K. Quarterly Corded PBX (News - Alert) and IP PBX Report,” MZA said the 496,000 extensions shipped during the first three months of the year, a drop of 38 percent year-over-year. While the quarter-to-quarter volume decline slowed from 21 percent to 15 percent, the total market figure for Q1 2009 is the lowest recorded volume since MZA launched the reporting service, the company said.
“The U.K. is now on course for its worst annual market performance since 1998 unless volumes dramatically improve in the next quarters,” MZA said in a prepared statement.
Volumes decreased by 40 percent in the below 100 extensions market, while the above 100 extensions market registered a falloff of 34 percent.  While the larger declines typically had been seen in the sub-100 extension market, the drops were spread across all sectors, MZA said.
MZA attributes the decline to the fast deterioration of the marketing in 2008 as Q1 2008 was a strong quarter in the U.K. The company noted that the quarter over quarter (Q1 2009 versus Q4 2008) decrease is less severe.
Cisco led the UK PBX market with 17 percent total market share, while Avaya took the No. 2 spot also with 17 percent. Mitel (News - Alert) Networks has 15 percent market share this quarter. Avaya led the below 100 extensions market, followed by Nortel. Meanwhile, in the above 100 extensions market, Cisco (News - Alert) maintained its leadership position, followed by Avaya.
There was some good news in IP PBX shipments. MZA reported a slight increase with 48 percent of extensions deployed at the desktop versus 42 percent the same period a year ago. Despite the volume of IP extensions declining compared to Q1 2008, IP penetration grew to 30 percent in Q1 2009 compared to 22 percent a year ago. MZA said.
In the above 100 extensions market, IP penetration experienced little change remaining just short of 70 percent. Cisco makes up about one-third of IP extensions in the U.K., while Mitel Networks retains its second position this quarter with a share of just under 20 percent, the report said.
In its previous Q4 2008 report, MZA noted a 20 percent decrease on the PBX and IP PBX market in the U.K., TMCnet reported.
MZA offers marketing consultancy services to the telecommunications and IT and provides expertise covering a range of consumer-based and professional voice, data and mobile solutions.

Edited by Amy Tierney

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