IP telephony market maintains steady growth

IDC anticipates that the IP telephony market will weather the problems of the networking and telecommunications industries and continue to grow at pace over the next five years.

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By  Zoe Moleshead Published  January 27, 2003

IDC anticipates that the IP telephony market will weather the problems of the networking and telecommunications industries and continue to grow at pace over the next five years.

The analyst house is expecting revenues in the worldwide IP telephony equipment market to grow by 30% this year, led by enterprise demand for systems such as IP-PBXs. IDC predicts that the enterprise market will yield a sales increase of 66% this year.

“The overall market is projected to increase at a compound annual growth rate of 45% to reach a revenue base of US$5.1 billion by 2007,” says Tm Valovic, director, IP telephony program, IDC.

The research group also believes the market will provide significant opportunities for IP-PBX vendors and carriers that are looking to deliver IP Centrex and Voice over IP (VoIP) virtual private network VPN) services.

However, IDC also suggests that many telcos may postpone or delay investments in next generation equipment, instead opting to make the most from their existing legacy infrastructure.

“The danger here is fairly obvious — R&D and technology development can fall behind along with design, test, and installation experience needed to provide a strong transitional capability for traditional customers,” explains Valovic.

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