The total UK PBX/IP-PBX market in Q2 2009 (period April to June 2009) registered a decrease of 25 per cent compared to the same quarter in 2008, reaching just over 538,000 extensions. However, volumes increased by seven per cent compared to Q1 2009. The drop between Q4 2008 and Q1 2009 was 14 per cent, meaning that the recorded growth in Q2 2009 over Q1 2009 is a positive turnaround.

These are the findings of MZA's UK Quarterly Corded PBX and IP PBX Report for Q2 2009, which also revealed that volumes declined by 23 per cent in the below 100 extensions market, while the above 100 extensions market registered a fall of 27 per cent. Whereas previously the larger declines had been most intensely felt in the below 100 extensions market, this time the drops were more pronounced in the larger market segments. In the above 100 extensions segment, the heaviest loss of 65 per cent came in the 1001-plus extensions category, while the other market segments in this area decreased by between 16 per cent and 22 per cent compared to Q2 2008.

In the below 100 extensions market, the greatest decline (excluding products that fall into the Micro PBX category) was in the 11-30 extensions space, which fell by 32 per cent compared to Q2 2008. The other segments fell by between five per cent and 28 per cent. These declines have been exacerbated by the fact that Q2 2008 was a strong quarter for the UK market and is a reminder of how quickly the market deteriorated during 2008. Quarter over quarter (Q2 2009 versus Q1 2009) there was some improvement, notes MZA. The below 100 extensions market rose by 11 per cent and the above 100 extensions market saw a rise of two per cent.

Avaya led the UK PBX market in Q2 2009, with a 19 per cent total market share, while Cisco slipped into second position with 16 per cent. Meanwhile, Mitel Networks is in close third position also with a 16 per cent market share this quarter (Avaya led the below 100 extensions market, followed by Mitel Networks). In the above 100 extensions market, Cisco retained its leadership position, followed by Avaya. Since the publication of MZA's Q2 2009 data, Avaya has been announced as the winning bidder in the auction for Nortel's enterprise communications business. The acquisition of Nortel's enterprise business will potentially significantly strengthen Avaya's UK market position and channel relationships. In Q2 2009 Nortel and Avaya combined represented 31 per cent of total PBX/IP PBX extensions shipped in the UK.

IP extensions market
In Q2 2009, 48 per cent of extensions deployed at the desktop in the UK were IP compared to 46 per cent in Q2 2008. IP penetration continued to grow in the below 100 extensions segment, despite the volume of IP extensions declining compared to Q2 2008. It reached 29 per cent in Q2 2009 compared to 24 per cent in Q2 2008. In the above 100 extensions market, there was a marginal change as IP penetration rose from 71 per cent in Q2 2008 to 73 per cent in Q2 2009. Cisco represented just under a third of IP extensions in the UK, while Mitel Networks kept its second position this quarter with a share of just over 20 per cent.