The report, Enterprise TelephonyWorldwide Market Share and Forecasts, shows Cisco took the lead for thefirst time in the overall PBX-KTS equipment market after growing itsrevenue 19% in 3Q08. Avaya also posted strong quarterly growth, increasingoverall PBX revenue 10%; Avaya is now in 2nd place in the worldwide PBX andIP PBX equipment markets; Nortel is 3rd. Cisco is the only vendor gainingsignificant market share in this market in 2008; most other vendors areholding steady or decreasing slightly, the report shows.

"The enterprise telephony market more than likely will get squeezed duringthe recession, particularly in 2009, because one of the prime drivers ofPBX sales is the creation of new businesses and the expansion of existingbusinesses, which are hampered during downturns. There are a few brightspots, though, like the pure IP PBX segment, which is benefiting from newproduct launches, and IP softphones, of which we've seen a tremendousuptake in recent quarters, and which should weather the economic stormfairly well, with continued annual growth expected," said Matthias Machowinski,directing analyst for enterprise voice and data at Infonetics Research.

Other highlights from thereport:

-- The IP PBX segment grew 9% in revenue and 7% in lines from 2Q08 to 3Q08-- Year-over-year, quarterly IP phone shipments are up 25% in 3Q08-- IP softphone shipments more than doubled from 2Q08 to 3Q08-- The TDM segment will drop below the $1 billion mark for the first time in 2008

Infonetics' report tracks3Com, Aastra, AudioCodes, Alcatel-Lucent, Avaya, Cisco, Dialogic, Mitel,NEC, Nortel, Quintum, Samsung, ShoreTel, Siemens, Tadiran, Toshiba,Vertical, and others. The report provides worldwide and regional forecastsand market size for TDM PBX/KTS systems, IP PBX systems with hybrid andpure IP splits, IP PBX by system size, VoIP gateways, and IP deskphones andsoftphones. Pivot tables are included.

For report highlights, log into Infonetics' online portal from www.infonetics.com (see Enterprise Voiceand UC). For sales, contact Larry Howard, vice president, atlarry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international marketresearch and consulting firm serving the communications industry since1990. A leader in defining and tracking emerging and establishedtechnologies in all world regions, Infonetics helps clients plan, strategize, andcompete more effectively.

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Press ContactMatthias MachowinskiDirecting Analyst, Enterprise Voice and DataInfonetics ResearchEmail Contact(781) 933-9868