Frost & Sullivan forecasts enterprise IP telephony slump

Frost & Sullivan is the latest research firm to see a declining market for IP telephony in the coming year. Its latest report, "World Enterprise IP Telephony Endpoint Markets," reported revenue of $2.68 billion for the sector in 2008, but the firm predicted revenues would slip to $2.57 billion in 2009, with the decline continuing into 2010. The firm expects a gradual recovery to begin in 2011, with growth accelerating through 2015.

"The penetration of session initiation protocol (SIP) devices, the steady decline in price points and the continued increase in the overall value proposition of IP desktop phones in terms of features and applications are some of the factors that will bode well for the market, driving adoption," Frost & Sullivan Industry Analyst Alaa Saayed said in a statement.

The report said increased softclient and next-gen deskphone uptake, coupled with aggressive bundling strategies, is driving the growth in the IP telephony market. The firm advised IP telephony vendors to explore sales opportunities in international markets, seek channel partnerships and forge agreements with key companies in order to drive adoption and revenues.

For more:
- see the press release on the report here
- see the Frost & Sullivan page for the report here 

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