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IP Telephone Market Set For 108% Sales Growth 2000-2005

IP Telephone Market Set For 108% Sales Growth 2000-2005

Sales of IP telephones – telephones that transfer voice and data via the internet – grew by 111% in Europe year on year in 2001, according to research published this month by IDC.

The report shows that there was a push in IP (internet protocol) enabled phones in the latter part of 2000. IDC forecasts that IP telephone shipments and revenue are set to rise by 108% and 80% respectively, in compound annual growth rate from 2000 to 2005.

Whilst the IP telephone market is growing, it naturally still remains a tiny proportion of the overall telephone marketplace. IP telephones use the internet to transfer voice and data, rather than the traditional ‘phone or cable lines. Initially growth is expected in the ‘enterprise environment’, although the IP telephone still has a long way to go before it is considered to be the standard desktop communication device, says IDC.

“The inevitability of voice and data convergence alone will not propel the IP telephone market,” says IDC’s European IP Telephony analyst Julie Wall. “The numerous standards complicating interoperability, and the high price of the IP telephone will fetter rapid adoption. It is essential that vendors work to solve issues involving standards and interoperability, and educate the market by promoting the benefits of bringing IP to the desktop via IP telephones.”

The report, IP Phones Poised For Take-off: Western Europe Market Forecast and Analysis, 2000–2005, covers 16 countries in the Western European region.

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