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Enterprise IP telephony continued growth in 2008

June 4, 2009

Despite the onset of a global recession, the market for IP telephony for business clients continued to grow in 2008 to revenues of more than $2.68 billion, according to a new report.

Market analysis from Frost & Sullivan found that businesses are increasing their adoption of Voice over Internet Protocol (VoIP) phones and technology in a shift toward more unified communications.

"The IP desktop phone is no longer a simple device, but rather a highly intelligent and integrated communication endpoint, interoperable with enterprise hardware/software platforms and communication applications," Frost & Sullivan said.

Although economic forecast predict steady revenue decline until 2010, the IP telephony market is expected to gradually recover by 2011 and continue with a healthy growth pattern until the end of the forecast period in 2015.

"The penetration of session initiation protocol (SIP) devices, the steady decline in price point, 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," said Frost & Sullivan analyst Alaa Saayed.

Last year's new models represented third-generation IP desktop phones with larger color screens, improved wideband audio functionality, and "green" benefits, such as improved power efficiency.

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