UK telephony market slumps to record low

MZA figures reveal 38 per cent plunge in Q1 shipments

The UK telephony market is on course to suffer its worst year since 1998 after shipments nose dived by more than a third in the first quarter.

According to market watcher MZA, the number of extensions shipped in the first three months of the year stood at 496,000, down a dramatic 38 per cent on an annual comparison.

Although the rate of quarter-on-quarter decline slowed from 21 per cent to 15 per cent, the figure was the lowest since MZA’s records began.

“The UK is now on course for its worst annual market performance since 1998 unless volumes dramatically improve in the next quarters,” MZA said.

Until recently, the most pronounced slumps had been felt in the sub-100 extension market but this time the drops were generic across all sectors. The sub-100 segment fell 40 per cent, while the above-100 segment dropped 34 per cent.

It wasn’t all bad news, however, as MZA noted a spike in IP PBX shipments in the SME space. IP penetration now stands at 30 per cent in the sub-100 market compared to 22 per cent a year ago, while IP penetration in the above-100 segment remained just short of 70 per cent.

Cisco represented about a third of IP extensions, while the networking giant led the PBX market more narrowly with a 17 per cent share. Avaya was second, also with 17 per cent, with Mitel following close behind on a 15 per cent share.