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Recession-induced Pressures Dominate the Latin American Enterprise Telephony Solutions Market Scenario - The enterprise telephony market in Latin America witnessed a considerable decrease of 15% in revenues from 2008. Geographically, the decline took place in almost all sub regions, except Brazil, where total revenues had a softer decrease in 2009
Recession-induced Pressures Dominate the Latin American Enterprise Telephony Solutions Market Scenario

 

NewswireToday - /newswire/ - London, United Kingdom, 2011/01/21 - The enterprise telephony market in Latin America witnessed a considerable decrease of 15% in revenues from 2008. Geographically, the decline took place in almost all sub regions, except Brazil, where total revenues had a softer decrease in 2009.

   
 
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Almost all companies in the Latin American market experienced decreased revenues. However, in the second semester, the picture had slightly changed with vendors closing down to initial predictions made during 2008.

Participants with significant presence in countries that were less affected by the recession, such as Brazil and Colombia, were stable or achieved a modest growth when compared to 2008. The same was noticed for local vendors with lower equipment prices. 'After a significant decline on sales of all telephony systems in 2009, the Latin America enterprise telephony solutions market is likely to recover in the next few years,' notes Juan González, Industry Manager in Latin America. 'Brazil is expected to achieve 2008 sales levels in 2010 too, due to strong sales from almost all private branch exchange (PBX) vendors.' A promising recovery is anticipated for Peru and Colombia in the Andean Region. In fact, this sub region should recover fast from sales decreases, most likely by 2011.

The high cost of solutions is a major barrier for wider adoption. The remaining investments on legacy equipment will delay new investments. As far as the competitive landscape is concerned, the entrance of new participants has intensified competition and increased the number of alternative offers of telephony solutions. To remain competitive and protect their installed base of clients, vendors are constantly working on the pricing of their offers of telephony solutions. In some cases, they are investing in local production of their solutions.

Hosted IP telephony services continue to increase in Latin America. Small and medium companies are demanding a smarter and more cost-effective approach. 'Currently, many telecommunications carriers and global service providers have released or on the verge of releasing new services of hosted IP telephony or even hosted unified communications (UC) services targeting small and medium business (SMB) customers,' says Juan González. 'Vendors, through partnerships, are also on their way to offer these services.' Video and collaboration applications had seen vigorous uptake during 2009 and 2010 as they helped cut down travel costs and speed up the decision-making process. Increasing broadband penetration in Latin America and greater customer awareness of their benefits are fuelling the adoption of these services.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Latin America Enterprise Telephony Solutions Market 2010 / N8A1-64 VB

 
 
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Recession-induced Pressures Dominate the Latin American Enterprise Telephony Solutions Market Scenario

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