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For more information, contact:
Kirsten Skedd, Marketing Manager
Phone: 480.609.4534; Email: kskedd@instat.com

 VOICE APPLICATIONS 

Bell-Heads Go IP: LAN Telephony to Slowly Cannibalize PBX


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SCOTTSDALE, Ariz., July 17, 2001 - LAN Telephony is the future of enterprise voice, according to Cahners In-Stat Group (http://www.instat.com). The high-tech market research firm projects that, pricing, ease of use, administration, and most importantly applications, will drive the adoption of LAN Telephony, leading slowly to the cannibalization of the once dominant PBX (private branch exchange) market. Despite currently weathering the negative effects of U.S. economic conditions, In-Stat predicts revenues of over three billion dollars in LAN Telephony handset, server, and application sales by 2005.

"In the beginning of 2000, most vendors were only beginning to ramp up their sales and there was little actual revenue to speak of. Now half way into 2001 the LAN Telephony market has proven itself," Says Brian Strachman, Senior Analyst for Voice Applications at In-Stat. "There are real revenues, which is rather unusual in today's market, and a growing installed base." Applications will be the biggest driving factor in LAN Telephony sales. By utilizing data technologies, LAN Telephony is an ideal environment for innovative new applications. These products, many of which will be produced by third party vendors, will be the reason many companies adopt the technology.

In-Stat also found that:

  • At the forefront of all the technical issues relevant to LAN Telephony is voice quality and reliability. People are used to having flawless telephone service, and static, fragmented sentences, and dropped calls are unacceptable. The industry is in a very fragile state right now, and even a few mishaps with service quality could potentially ruin a very profitable future market.
  • Among the market share leaders in the 2000 LAN Telephony U.S. station market were: 3 Com, Alcatel, Avaya, Cisco, Shoreline and Siemens.
  • The top 6 market leaders garnered 94% of the U.S. station market.

The report, "LAN Telephony 2001: Bell-Heads Go IP!" (#VA0104LT) examines the technology, market drivers, and profiles of every major vendor. A 2000 and Q1 2001 market share, as well as a five year forecast are also included. To purchase this report or for more information please contact Courtney McEuen at 480.609.4533; cmceuen@instat.com. The report price is $ 3,495 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (http://www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

For more information, contact:

Brian Strachman, Senior Analyst - Voice Applications
Phone: 480.483.4454
Email:
bstrachman@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534

Email: kskedd@instat.com

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