Strong Finish to 2006 say MZA

Analyst MZA has reported a strong finish to 2006 in the UK PBX market.

Extensions in the UK PBX/IP PBX market grew 4% in Q4 2006 compared to the same period in 2005. This was attributable to annual growth across all size segments except for the market below 30 extensions which had experienced stronger growth in preceding quarters. However, the 30-100 market displayed 4% annual growth and the 31-50 size segment recorded its best quarter in 2006. The above 100 extensions market grew year-on-year by 17%, although to a much lesser extent in segments above 500 extensions compared to preceding successful quarters.

BT continues to lead the supplier market with 24% of total extensions, a slight decline of 1% on its Q4 2005 market share. Nortel then steadily head the manufacturers followed by Cisco Systems who enjoy another successful quarter. Avaya come next, although drop some market share. A good performance by Mitel Networks sees little between them and Panasonic this quarter. Siemens also lose some ground after an excellent couple of preceding quarters.

In the Q4 2006 supplier market for below 100 extensions, BT holds onto the top. Panasonic maintains its manufacturers lead with an 18% share, compared to 19% in Q4 2005. Nortel and Avaya come next, followed by Lake Communications who enjoy a healthy quarter. Notable performances in the low end segments came from Samsung, Mitel and Alcatel, all increasing year-on-year market share.

The greater than 100 extensions market is again headed by BT in terms of supplier shares. Nortel and Cisco Systems hold the top two manufacturer’s positions. Mitel gain ground on Avaya, with Siemens in tow this quarter above 100 extensions. Alcatel and Samsung notched particularly good end of calendar year performances in this segment.

The IP Extensions Market

Extensions shipped on pure IP systems have increased to represent 15% of total extensions shipped compared to 13% in Q4 2005. The number of IP extensions shipped (both on IP capable/enabled and pure IP systems) in Q4 2006 represents 32% of extensions shipped compared to 23% in Q4 2005. IP extension volumes are up 47% compared to the same quarter last year. Cisco Systems maintains its stronghold of the IP extensions market, followed by Mitel’s good quarter. However, in Q4 2006, Nortel and Avaya also improve their shares of the IP extensions market as IP penetration increases.

IP extensions shipped in the sub 100 market continue year-on-year growth. 15% of extensions were IP in the SMB area compared to 10% in the same period last year. This equates to a 42% increase in IP extensions volume. Mitel continues to be the IP leader below 100 extensions.

Sales of IP enabled/IP capable PBXs now account for almost 100% of extensions volume in the market for more than 100 extensions and IP extensions are representing more than half of extensions shipped in this category. This equates to a 48% increase in IP extensions volume with Cisco Systems leading the way.