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Financial Institutions and Retail Chains Lead the Way in IPTelephony Migration in the Southern Cone Region

04-06-2005

A recent study by independent industry analysis firm Frost &Sullivan, reveals that financial institutions and retail chains inthe Southern Cone are increasingly taking advantage of the benefitsof IP Telephony and are leading the adoption of this technology inthe region.

A recent study by independent industry analysis firm Frost & Sullivan*, reveals that financial institutions and retail chains in the Southern Cone are increasingly taking advantage of the benefits of IP Telephony and are leading the adoption of this technology in the region. According to the report, Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services, is the leader in IP Telephony solutions in the Southern Cone with a 27 percent market share in 2003. Frost & Sullivan estimates that revenues from IP Telephony sales in the region in 2005 will surpass those of 2004 by 32 percent.

One of the main drivers for growth of IP telephony in the Southern Cone is the decision by the retail sector and financial institutions to adopt this technology in order to reduce telecommunication costs between their offices and facilities located throughout the country. Companies with branch offices and a highly mobile workforce also see a clear opportunity in IP telephony.

IP telephony is a software-based technology that uses voice through the Internet protocol (VoIP) to transmit voice and data through a computer network. This innovative technology includes features such as: call forwarding, teleconferencing and voice messaging, among other applications, enhancing telecommunications networks capacity and cutting down costs.

Businesses in the retail and financial industries are constantly seeking to optimize the customer experience. The ability for a customer to contact a company by any means they choose (e-mail, phone or web) and be connected to the contact center agent who can best answer their inquiries, is top priority. Call Centers equipped with IP telephony (or contact centers) also allow agents to work wherever they are, thus, resulting in more productive agents, more intelligent processes and more satisfied customers.

"Avaya has succeeded in achieving a strong presence in the region thanks to the company's ongoing commitment to protecting their customers' investments, transforming business processes in an intelligent way and providing next generation solutions," said Carla Zarza, market analyst for Frost & Sullivan in Latin America.

According to Frost & Sullivan, Avaya managed to increase its foothold in IP solutions as a result of the positive perception of the quality of its products and existing installed base. During 2003, the company sold 68,106 IP lines in the region.

"In Latin America, and particularly in the Southern Cone, a migration from traditional to IP telephony is gradually taking place, providing new capabilities and added value to companies in search of competitive advantage," explained Horacio Molinari, managing director for Avaya in the Southern Cone.

Avaya hopes to increase its IP Telephony market share in the region by targeting vertical markets like the government, where there is a strong interest in migrating to IP.

According to Frost & Sullivan, hybrid IP systems will continue to lead in the number of IP telephony lines delivered in the short term, especially in countries like Argentina and Peru. In Chile, the total number of IP lines delivered since 2004 has increased, a trend that will stir up a growth in terms of share, steered at the same time by large scale projects.

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including over 90 percent of the FORTUNE 500 ®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com

* Source: Frost & Sullivan "Latin America IP Telephony Solutions: Market Share Analysis, 2003" Report

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