PBX market begins long road to recovery in Q2

UK market shrinks by a quarter year on year but returns to sequential growth following torrid Q1

Brighter times ahead: the UK PBX market rebounded by seven per cent sequentially in Q2

Despite a year-on-year contraction of 25 per cent, the UK PBX market started to show signs of recovery in 2009's second quarter, research has claimed.

The UK Quarterly Corded PBX and IP PBX Report from analyst MZA finds 538,000 extensions were deployed in Q2, an annual decline of 25 per cent. However, this figure represents a seven per cent increase on this year's opening quarter. In Q1 the market suffered a 14 per cent sequential decline.

The below 100 extensions market fell by 23 per cent year on year in Q2, while the above 100 extensions arena slumped 27 per cent. This is the first time negative growth has been more stark in the upper end of the market than in the lower echelons.

The biggest impact was felt in the over 1000 extensions space, where the market shrank by almost two thirds year on year. MZA said Q2 2009's losses were thrown into relief by the strength displayed in the market during the corresponding period last year.

Avaya was the UK's leading manufacturer in Q2 with a 19 per cent market share. This put the vendor three points ahead of Cisco and Mitel, which were a lick of paint apart in second and third spot respectively.

The sub-100 extensions space was also led by Avaya, with Mitel taking second place. Cisco led the above 100 extensions arena, followed by Avaya. MZA indicated that, between the two, Nortel and Avaya accounted for nearly a third of the entire market.

IP extensions continued to eat into legacy telephony's market share and accounted for 48 per cent of all extensions, a one point rise on Q2 2008. In the below 100 extensions segment IP represented 29 per cent of extensions, up from 24 per cent a year ago.

In the above 100 arena IP penetration rose from 69 to 71 per cent. Cisco grabbed almost a third of the IP extensions market, with Mitel grabbing more than 20 per cent to take second spot.

Compared to the rest of the world, the UK PBX market fared marginally better than some other regions during 2009's second quarter. The total global market slumped 28 per cent year on year. The Eastern European market shrank an eye-watering 54 per cent, while the Middle East and Africa fell back 31 per cent and North America slumped 29 per cent.

Cisco remained the worldwide market leader, although Avaya, in second place, would be comfortably on top if its market share was combined with Nortel's. Panasonic and NEC took third and fourth spot globally.