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Economic Stability of the Region Drives the Enterprise Telephony Solutions Markets in Latin America - New analysis from Frost & Sullivan, Latin America Enterprise Telephony Solutions Markets, reveals that the market earned revenues of $621.4 million in 2006 and is estimated to reach $1.19 billion in 2012
Economic Stability of the Region Drives the Enterprise Telephony Solutions Markets in Latin America

 

NewswireToday - /newswire/ - Buenos Aires, Argentina, 2007/11/29 - New analysis from Frost & Sullivan, Latin America Enterprise Telephony Solutions Markets, reveals that the market earned revenues of $621.4 million in 2006 and is estimated to reach $1.19 billion in 2012.

   
 
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The growth of the Latin American enterprise telephony market is mainly driven by the increasing economic and political stability of the region, together with the IP adoption trend. The positive macroeconomic scenario improved companies’ investment capacity, thus encouraging them to invest in technologies, where IP implementation was one of the top priorities. Latin America has experienced huge adoption of IP converged platforms, mainly because these kind of solutions can be deployed gradually, allowing to protect old investments and to start IP migration in critical areas that would be expanded later.

New analysis from Frost & Sullivan (enterprise.frost.com), Latin America Enterprise Telephony Solutions Markets, reveals that the market earned revenues of $621.4 million in 2006 and is estimated to reach $1.19 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Latin America Enterprise Telephony Solutions Markets, then send an email to José María Jantus, Corporate Communications, at jose.jantus[.]frost.com with the following information: your full name, company name, title, telephone number, email address, city, state, and country. We will send you the information via e-mail upon receipt of the above information.

"The growth in this market is mainly attributed to the economic stability and the fact that the time-division multiplexing (TDM) installed base is nearing the end of its replacement period," reveals Juan Manuel González, Research Analyst for Enterprise Communications group at Frost & Sullivan "IP telephony was long criticized as not being reliable, scalable, and secure; however, that situation is changing rapidly and vendors have seen a wide adoption in the region, with strong growth rates in IP sales."

This scenario is changing and the high rate of adoption has been driven by cost reduction with long distance calls and also with the convergence between data and voice. Furthermore, the enterprise telephony market is becoming more mature and companies are realizing the benefits of IP telephony by the use of advanced applications such as unified communications.

Nonetheless, the high number of converged systems being shipped out and the high number of non-IP lines show that an IP phone is not the technology of choice for every user. Moreover, approximately 85 percent of the total installed lines in Latin America are still applying TDM, proving that the market is not yet prepared for a full migration standard in terms of technology and investment capacity.

"Moreover, IP adoption will happen gradually along with the analog migration to digital terminals, mainly because Latin American enterprises have invested heavily in those devices", explains González. "In addition, these enterprises are waiting for the depreciation cycle to end before migrating to IP, thus hybrid solutions have a better appeal in the region for their interoperability with legacy equipment and end points.”

As part of the large-scale drive to encourage IP adoption, there were several events, articles, and workshops to promote IP telephony during the past year. Enterprises became more interested in IP and vendors felt the reflection of this on the IP sales. As a consequence, the usage of traditional telephony declined especially in the large enterprise segment. In addition, some initiatives such as hosted IP are expected to encourage small and medium businesses to replace traditional telephony in the future, since no investments are required to migrate to their platforms.

Latin America Enterprise Telephony Solutions Markets is part of the Enterprise Communications Growth Partnership Service, and it thoroughly examines the following technologies: TDM solutions, IP converged systems, IP pure PBX, IP terminals and softphones, and an assessment of advanced applications. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

 
 
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Economic Stability of the Region Drives the Enterprise Telephony Solutions Markets in Latin America

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Frost & Sullivan |
Publisher Contact: José María Jantu 
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