Dell’Oro Group Forecasts IP Phone Revenues to Surpass $6 Billion in 2012

LAN Infrastructure Capable of Supporting Growth in IP Phones

Redwood City, Calif. – January 29, 2008 – According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, IP Phone revenues are expected to double over the next five years, reaching just over $6 billion by 2012, while shipments of IP Phones are forecasted to grow 25 percent a year over the same period.

“Most of the strong future growth in IP Phones will continue to come from IP desk phones that will begin incorporating more features and functionality, such as larger color displays, touch screens, and video capabilities, as the cost to add these features declines and users begin to expect their desk phones to have a feature set similar to their cell phones,” said Alan Weckel, Senior Analyst at Dell’Oro Group. “Fortunately for the IP Phone market, most LAN switch deployments will be voice ready during the next five years, eliminating the concern for enterprises deploying voice. By 2012, there will be enough infrastructure in place to support VoIP to every enterprise desktop,” Weckel added.

The report also indicates that the IP lines will grow from slightly less than 20 percent of total lines installed in 2007 to over 50 percent in 2012.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the IP Telephony Enterprise industry with tables covering manufacturers’ revenue, average selling prices, line (analog/digital and IP) shipments for IP PBX, Hybrid IP/TDM PBX, traditional PBX, traditional key systems, and IP telephones. To purchase this report, please contact Margaret Miles, call +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.