Going Wireless

India, Australia, South Korea and China put together contributed 75% of the total APAC enterprise telephony market, as per a Frost & Sullivan report

. Resilient performance in these countries helped reduce the magnitude of decline across the APAC enterprise telephony market. Higher growth is expected from India and China in the forthcoming quarters.

In India, the PBX market size is around Rs 800 crore. Market in terms of number of lines would be around 3 to 3.5 mn per year. Small and medium sized PBXs form a significant portion due to their sheer numbers.

The worldwide PBX sales grew by approximately 1% last year. However, in 2008-09 the market grew by almost 7% reportedly.

The economic slowdown has had a negative impact on every sector. In India, the growth in the government sector has gone up, which in turn has compensated for the slowdown in other sectors. Purchase orders have been reduced or stopped or deferred; however, there are signs of recovery. The market will start showing reasonable growth this year onwards.

The Technology

The PBX technology can be divided into three categories-analog, digital, (PCM-TDM) and IP. Analog technology is prevalent in mainly small PBX up to sixteen lines. Digital (PCM-TDM) PBXs with ISDN BRI and PRI interfaces are popular in all configurations up to 500 lines. And the penetration of IP PBX technology is on the rise. There are still some regulatory issues resulting in confusion in the market regarding the usage of IP for voice communication. But once it is resolved, IP is likely to replace PCM-TDM sooner than the industry expects.

IP telephony technology has gained a strong mindset in the mainstream market. Enterprises are deploying hybrid and IP-PBX systems even for PSTN network. In fact, the demand has percolated from large enterprise networks down to SMBs since they too have realized the immense benefits that these systems can offer. Reduction in equipments costs and the lower TCO has made them adopt these systems with greater vigor.

Further, high speed broadband, inexpensive end terminals, and international long distance carrier options will encourage the growth of VoIP in India. Increase in the adoption of unified communication applications, availability of required bandwidth, and increased awareness levels will drive the growth of the Indian VoIP market.

The industry is moving towards unification. Enterprise and carrier networks are overlapping in functionality. The way forward in such a scenario is to offer comprehensive solutions catering to different market segments like SOHO, SME and large enterprises. Extensive customer reach backed by high quality service support will be the differentiating factor. Offering solutions for verticals like hospitality, trading, etc, will generate a new market segment. IP converged network is a basic requirement of an enterprise now. Real-time IP applications on converged networks will revolutionize the enterprise communications market.

Going Wireless

By: VK Singh

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