Sales of basic on-site telephone systems are extremely competitive and margins are slim. Discounts of up to 40% are common on purchases. Slim margins, the need to raise money and slow growth are among the reasons that Lucent divested itself of Avaya, its PBX and customer premise equipment (CPE) division. Vendors of telephone systems and CPE derive much of their profits in the following areas:
Maintenance contracts on telephone systems
Moves, adds and changes of installed-base telephone equipment
Upgrades to the hardware and software of existing telephone systems
Feature telephones with built-in speakerphones, feature buttons and liquid crystal displays
Wireless telephones for PBX and key ...