CANADIAN PBX/KTS MARKET REPORT

2001 EDITION

NBI/Michael Sone Associates
193 Church Street
Toronto, Ontario
M5B 1Y7
Telephone (416) 360-0424
Facsimile (416) 360-7546
e-mail msone@nbicanada.com

September 2001

At over 130 pages, NBI/Michael Sone Associates' Canadian PBX/KTS Market Report, 2001 Edition, is the latest in a series of reports on the PBX/KTS market, published by the company since the early 1980s.

In this report, NBI/Michael Sone Associates presents detailed quantitative and qualitative information on Avaya, Mitel, NEC, Nortel, Panasonic, Toshiba, Siemens, Cisco and 3COM - the major PBX and key system vendors in Canada.

Until 1999, NBI/Michael Sone Associates had published separate reports for the PBX and KTS markets. This is the third edition for which both sectors have been combined to present the information in a comprehensive manner and reflect crossover in market segmentation and the blurring of distinction between traditional PBX and key systems. Increasingly, systems are configured according to customer requirements, either as key-hybrid or PBX systems. And, with the rise in prominence of IP-telephony, the traditional line between various technologies is undergoing further redefinition.

In the interests of providing greater value for the reader, the 2001 Edition has been designed with a new structure. While we have retained the comprehensive quantitative profiles of the aforementioned vendors, the current report also provides detailed qualitative presentations, discussing each company's marketing activities and product initiatives along with an analysis of future expectations of growth within their respective areas. Although for the sake of timeliness, the phone and interconnect company spreadsheets have been omitted, the vendor profiles do examine distribution approaches taken by the various manufacturers.

The report's 65 Exhibits and Charts and the profiles themselves provide information on system and station shipments and installed base, vertical and regional market analysis, system-size segmentation and distribution channels.

The PBX/KTS sector has undergone a major change in the past few years with the introduction of IP-telephony as the technology that will overtake Legacy products later in the decade. In this report, for the first time, NBI/Michael Sone Associates separates shipments of IP and Legacy stations and systems for the reader's edification.

Given NEC's recent acquisition of Nitsuko, 2001 data has been presented for the combined entity.

This report, together with others on the voice mail, unified messaging, ACD, videoconferencing and Data and Internet Networking sectors, comprises the cornerstone of NBI/Michael Sone Associates/ research on the Canadian CPE market. As with all NBI/Michael Sone Associates reports, information has been gathered from primary sources.

Revenues reported at end user levels represent proceeds from the sale of KTS and PBX equipment only. They exclude sales of applications, moves, ads, changes, service and maintenance.

The accuracy of the information in this report cannot be guaranteed. The information is the most recent available at the time of writing, but is subject to change. Information on specific companies should not be construed as official statements from those companies. Rather, such information represents the opinions of NBI/Michael Sone Associates. All figures, unless otherwise indicated, are NBI/Michael Sone Associates estimates. Where an error has occurred, NBI/Michael Sone Associates will be pleased to publish any demonstrably more accurate information that is supplied to us.

As always, NBI/Michael Sone Associates welcomes comments on this report and suggestions for future editions. Please contact us anytime at (416) 360-0424 or msone@nbicanada.com.