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Enterprise Telecom New System Spending

After dipping 1 percent in the previous quarter, enterprise telephony equipment manufacturers experienced an 11 percent jump in worldwide sales in 3Q07 to reach $2.6 billion, according to the latest study by Infonetics Research.

Revenue and shipments increased in all enterprise telephony categories tracked by Infonetics, led by the TDM segment, which outpaced IP PBX sales in 3Q07, the report shows.

"The Big Three (Avaya, Cisco, and Nortel) had excellent quarters, all growing well into the double digits," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

"The bump this quarter was partially due to seasonal factors, as the third quarter tends to be strong, but also because of increased demand across the board, even in the TDM segment. Overall, 2007 is on track for high single-digit growth over 2006."

Highlights from the Infonetics Study include:

- Cisco pulls away from the pack in 3Q07, after several quarters of neck and neck competition between the top 5 IP PBX vendors.

- Worldwide VoIP gateway sales are up 10 percent in 3Q07 over 2Q07.

- The overall enterprise telephony market is forecast to grow to $12 billion in 2010

- Hybrid PBX systems account for 64 percent of all PBX/KTS system line shipments worldwide; pure IP lines account for 18 percent, TDM lines 17 percent.

- IP phone shipments are forecast to grow in the double digits each year through 2010.

- 42 percent of all PBX/KTS and IP PBX system sales come from EMEA, 33 percent from North America, 18 percent from Asia Pacific, and 6 percent from CALA.

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