PBXs

	The SVX8016 from mainland China's Fujian Star-Net supports 100 IP extensions, one GSM interface, 16 analog ports and two GSM lines.

Output and export volumes rising; new models designed for enterprise and SOHO applications

The deepening penetration of IP-based communications worldwide, particularly in the enterprise sector, is boosting the young, but robust IP PBX supply markets in Taiwan, mainland China and South Korea. The faster pace of adoption of IP PBXs, especially in small- and medium-scale enterprises, is slowly displacing traditional PBXs which have long dominated this segment.

This uptrend is reflected in makers’ rising output and sales volumes. Taiwan’s Industry & Technology Intelligence Service (ITIS) forecasts that the island’s production of IP PBXs and VoIP gateways will reach 3.41 million units in 2008, equivalent to a 76 percent increase from the combined output of 1.94 million units in 2007, which itself was a growth of 88 percent from the 2006 output. Shipments of IP PBXs and VoIP gateways are projected to increase by 68 percent from 2007 to 2008 to hit 123 million units.

South Korea’s Electronics and Telecommunications Research Institute (ETRI) forecast the region’s IP PBX suppliers will generate a total export value of $195.19 million this year from a total production value of $487.99 million. These figures represent a growth of 137 percent and 77 percent, respectively, over 2006 export and production values. Government backing and support from major telecom networks are fast-tracking the growth of the market in South Korea, with services that allow users to retain their number despite upgrading from PSTN to IP phones key to expanding the user base.

The growing output volume in these supply markets is increasingly catering to small- and medium-scale enterprises and SOHOs. Multifunction systems have the capability to support voice mail boxes, least cost routing (LCR), auto route selection and other call services. Besides increasing their IP PBXs’ capacity in terms of supported users and extensions, more suppliers are also adding value via video support and future migration path toward 3G connectivity.

SIP IP PBXs are fast gaining ground in Taiwan and South Korea, with makers saying they will focus on SIP IP PBXs in line with their target of penetrating the enterprise segment. Many mainland China makers concentrate on Skype IP PBXs, which some companies say are more suitable for home use. Nevertheless, SIP versions are starting to make inroads into the mainland market.

	SinoVoip from mainland China has launched the SinoV-X600, an IP PBX for small and medium-sized enterprises that features a lifeline module and FXS and FXO ports.

Supply of IP PBXs continues to rise steadily as more makers step up production to meet demand. Production of SIP models has been particularly gaining momentum.

Taiwan’s First Communication Inc. (FCI) can provide 600 IP PBX sets a month. The company produced 4.7 million ports for SIP IP PBXs in 2007 and estimates its production this year will reach 5.3 million ports. Its Skype IP PBX production in 2007 totaled 5,000 ports, and projections this year place output at 25,000 ports. FCI offers SIP and Skype IP PBXs.

GodEngine Technolgy Inc. expects its output this year will reach 36,000 units of 1-port Skype IP PBXs and 240 units of 4-port Skype IP PBXs. The company can provide 3,000 units of 1-port Skype models a month.

TeleSynergy Research Inc. started making IP-enabled office communication solutions with PBX, auto attendant, voice mail, interactive voice response (IVR), fax-on-demand (FoD), unified messaging system (UMS) and VoIP with QoS in 1989. The company also functions as a design house and cooperates with several software vendors to develop CRM solutions. In preparation for growing demand, TeleSynergy expects its output of VoIP voice cards for IP PBXs will rise by 20 to 30 percent in 2008.

Shenzhen SinoVoIP Co. Ltd started producing SIP IP PBXs in H2 2007 with a monthly capacity of 20,000 units. The company’s product line includes VoIP, video meeting and wireless IP remote monitor products. SinoVoIP also makes Skype/SIP digital softswitches and Skype gateways.

Acetech Electronic Industrial (Xiamen) Co. Ltd churns out 200 SIP IP PBXs a month, although its capacity is 1,000 units monthly. Acetech started producing IP PBXs in early 2007. It also makes VoIP phones, VoIP equipment, GSM fixed phones, Skype phones and gateways.

Fujian Star-Net Communication Co. Ltd develops the hardware and software for its IP PBXs. Besides IP PBXs, the company also makes DSL routers/modems, GSM fixed wireless terminals (FWTs) and VoIP products.

A growing number of makers are concentrating on SIP IP PBXs. In Taiwan, more than 70 percent of the 40-company IP PBX supplier base emphasizes SIP IP PBXs. These companies target enterprises. Only a few Taiwan suppliers–less than 10 companies–pursue Skype IP PBXs.

In mainland China, the emphasis has been on Skype versions. There are about 15 makers of SIP IP PBXs and 40 makers of Skype IP PBXs. The Skype IP PBX segment is more mature than the SIP segment, but more makers have been shifting to SIP IP PBXs, signaling a change in product trends.

SIP IP PBXs likewise rule the South Korea mainstream markets. Makers said they choose SIP because it is more reliable than Skype services. Most companies cater to the SOHO and small enterprise markets.

The uptrend in the SIP IP PBX segment will be boosted by growing demand from enterprises, where traditional IP PBXs are giving way to IP-based platforms that can support enterprises’ varied and intensive communication requirements. Meanwhile, Skype PBX makers will need to overcome the product’s limitations in supporting analog and SIP protocols. Most Skype IP PBXs currently available are designed for home use and are influenced by trends in the consumer market.

SIP IP PBXs from Taiwan are moving toward multifunction designs. Many suppliers embed auto attendant, voice mail box and LCR functions in their SIP IP PBXs. Call center software and related VoIP capabilities are also incorporated.Some companies are expanding their products’ capacity.

Taiwan’s TeleSynergy released its all-in-one embedded IP PBX box series, which includes the SS-5000 and SS-7000, for small- and medium-scale enterprises with less than 40 employees. Another model, the CS-8000, is designed for enterprises with less than 200 employees.

The company’s SIMPLEXes combines auto attendant, voice mail box, LCR, IVR, telephony conference and call management—all in one box. It uses 1U case and supports 19in rack mounts. It features an expandable architecture to support analog, T1/E1 RRI, and SIP trunk for outbound line and CPE.

FCI produces IP PBXs with key telephones for enterprises. It also provides SIP servers. FCI’s basic IP PBX supports a maximum of eight basic trunk ports, four IP ports and 16 extension ports. Midrange IP PBXs support 20 basic trunk ports, 20 IP ports and 64 extension ports maximum. FCI’s high-end IP PBXs support up to 48 basic trunk ports, 24 IP ports and 144 extension ports.

GodEngine plans to add voice mail to its midrange and high-end products in Q2 2008. It provides USB interface and 1GB memory for its 1-port Skype PBXs.

GodEngine’s basic Skype PBX is a 1-port model. The midrange model has two ports for Skype and PSTN connections. The high-end Skype PBX has four ports.

The 10-company supplier base in South Korea is eyeing the SOHO market, although some companies also cater to small companies. Most makers in the region are medium- and large-scale suppliers of traditional IP PBXs. These suppliers see SOHOs, along with small enterprises, as an entry point to the IP PBX market. Myung Jae-Lee, CEO at I Culture Communication Inc. (ICC), said that IP PBXs for SOHOs took up only 10 percent of South Korea domestic market, but this share will increase to 30 percent in 2008.

South Korea’s makers of IP PBXs include joint-venture companies, such as Samsung-Avaya and LG-Nortel. The majority of suppliers have strength in software design, while outsourcing the hardware. Makers that produce hardware use platforms from Asterisk. A few companies such as AddPac Technology Co. Ltd, Volans Co. Ltd and ICC develop both hardware and software for IP PBXs.

ICC is developing its next-generation IP PBX, which enables video conversation with 3G phones. Volans provides value-added software programs such as IVR and voice mail. Volans is also developing a new model with a GSM interface for the European market.

Universal Creative Networks Inc. (Unicn) is promoting its SOHO model, the Hexus X1, which supports less than 100 ports. All of Unicn’s models are based on the Microsoft platform.

IP PBXs from mainland China integrate traditional PBX and VoIP functions. Some companies offer models with auto attendant, call queue, voice mail, automatic route selection, line hunt group and extension ring group.

Makers also incorporate additional functions such as GSM lines and audio interfaces. Some suppliers are currently developing IP PBXs with video functions.

Fujian Star-net plans to develop IP PBXs that integrate recording and video, and can simultaneously deliver mobile communication.

Acetech’s R&D department will focus on adding recording and video functions this year. The company’s VX500 IP PBX is an embedded VoIP server that can provide IP extension phone connection for SME global virtual offices.

Some mainland makers, such as Alcatel Shanghai Bell, are developing systems that merge Next Generation Network (NGN) and IP PBX solutions to provide enhanced capability for IP PBX network and communication services. These devices are aimed at government offices, post offices, hotels and transnational corporations.

Mainland China, Taiwan and South Korea makers project growth in export shipments this year. The shipment volume of SIP IP PBXs is currently small compared with that of Skype units, whose exports are driven also by Skype phones and gateways, but makers are confident SIP’s export share will grow.

Mainland China’s SinoVoIP exports 80 percent of its output to Southeast Asia, South America, India and Eastern Europe. Acetech ships all of its IP PBXs overseas. Its main export markets are Taiwan, Hong Kong and North America. Fujian Star-Net ships its products to South America and Europe. The company concentrates on OEM and ODM clients.

Taiwan companies have been focused on the domestic market, but recently started exploring markets in Southeast Asia and the Middle East.

Forty percent of TeleSynergy’s output now ships to overseas markets. The company is set to increase the export ratio this year. Its major markets are the US, Mexico, Ecuador, Chile, Australia, Taiwan, the Philippines, Japan, mainland China, Indonesia, Singapore, India, Turkey, Italy, Spain, Britain and Nigeria. All of the company’s sales come from its own brand. It projects that sales of IP PBXs and CTI through OEM and ODM business will increase.

Fifty percent of FCI’s revenue came from exports in 2007. Its major markets are the US, Asia, Europe and Africa. In 2008, the company expects to gain more orders from its Southeast Asia market. ODM business accounts for about 25 percent of FCI’s sales, and own-brand sales the rest.

GodEngine ships about 80 to 90 percent of its Skype IP PBXs to Europe and mainland China. The company sells its Skype IP PBXs through own-brand sales.

South Korea’s Unicn plans to explore the overseas market, initially targeting North America and Japan. ICC is exporting 20 percent of its IP PBXs to North America and Asia. About 70 percent of the company’s total output is under OEM contracts with one of the largest Internet phone and gateway suppliers in the US. In 2007, ICC’s total sales amounted to $1 million. The company expects that this will increase to $8 million in 2008, of which $1.6 million will come from export sales.

Mainland China makers forecast a price slide for SIP IP PBXs this year as the product matures.

Prices of IP PBXs from Fujian Star-Net range from $250 to $1,100 each. SinoVoIP’s IP PBXs range anywhere from $350 to as much as $2,820. Acetech said that the prices of its SIP models will decrease, while prices of Skype models will remain stable.

In Taiwan, SIP IP PBXs with basic 4-trunk ports are priced at about $200. Models with slots for memory expansion are priced at $150 each, depending on the capacity. Skype IP PBXs that support PSTN and Skype are priced from $25 to $50 each. Enterprise-use Skype IP PBXs with more than four ports start at over $1,000 each.

In South Korea, the average FOB price for IP PBXs with less than 20 ports is $600.