According to statistics of the ITIS project -a project initiated by Taiwan's Ministry of Economic Affairs and conducted by Taipei-based MIC -- the Taiwanese enterprise VoIP (Voice over Internet Protocol) equipment industry's IP phone shipment volume in the third and fourth quarter of 2008 is expected to reach 2.48 million and 2.64 million units respectively, representing year-on-year growth rates of 14.5% and 20.5%. Enterprise VoIP gateway shipment volume in the third and fourth quarter is expected to reach 425,000 and 502,000 ports respectively.

In the third and fourth quarter of 2008, IP phone orders from Cisco and Nortel will still be the main sources of shipment for Taiwanese makers. Orders from second-tier vendors such as D-Link, Linksys, and Thomson will also make a contribution to shipment volume. Avaya and Alcatel-Lucent are still looking for OEM/ODM partners in Taiwan for IP phones. Currently, they mainly outsource production to international EMS companies, and only Avaya has released some orders to Taiwanese makers. It is expected that larger orders will be released in the second half of 2008. Regarding IP PBX and IP gateway, Taiwanese makers are cooperating with local SI companies and small telecom operators in emerging markets in China, Eastern Europe, and Latin America to expand the market. In the second half of the year Taiwanese makers are expected to obtain orders from Avaya for IP gateways with a low number of ports. Cisco is also expected to continue giving orders to Taiwanese makers, stimulating Taiwanese shipment growth.

As for the development of the Taiwanese enterprise VoIP equipment industry in the second quarter of 2008, shipment volume of IP phones reached 2.37 million units, growing 21.7% year-on-year. Enterprise VoIP gateway shipment volume reached 351,200 ports, increasing 28% year-on-year. Shipment value of Taiwan's equipment VoIP equipment industry in the second quarter reached US$111.5 million, up 15.5% year-on-year. IP phone shipment value increased 15.7% year-on-year, while enterprise VoIP gateway shipment value increased 13.2% year-on-year.

Taiwanese makers continued to control IP phone orders from major international vendors, including Avaya, Cisco, and Nortel. Although the volume of these orders was affected by the weak overall status of the US market, Taiwanese shipment volume increased due to sales growth in Europe and Asia and the fact that Taiwanese makers won orders from second-tier European brands. As for VoIP gateways, Cisco outsourced some orders to Taiwanese manufacturers, while Taiwanese manufacturers had good results in developing emerging markets. Demand in the Eastern European market continued to increase. These developments contributed to the growth of VoIP gateway shipment in the second quarter.

Looking at developments which will play an important part in the VoIP industry and market, Host UC and Host VoIP are gradually becoming solutions for telecom and network companies to develop the SMB (Small and Medium Businesses) market and expand revenue. These solutions allow SMBs to enjoy the benefits of these services with only limited budgets. Although at this point in time many enterprises do not yet have a complete understanding of UC and VoIP, promotions by relevant vendors will increase enterprises' awareness of these services and will accelerate VoIP market growth.

Furthermore, South Korea has the highest broadband penetration rate in the world, and is one of the most advanced telecom markets in Asia. Besides releasing IPTV licenses, the Korean government is also expected to open up VoIP number portability service. The most important aspect of this service is that users can directly switch their original fixed-line numbers to VoIP numbers without needing to apply for Internet phone number starting with 070. This will intensify competition in the South Korean telecom market, and will also stimulate VoIP market development in other Asian countries.

More information can be found in the following MIC report:  The Taiwanese Enterprise VoIP Equipment Industry, 3Q 2008

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About ITIS

The ITIS (Industry and Technology Intelligence Services) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.