Toshiba Announces Plans to Shut Down Telecommunication Systems Division

Toshiba has informed dealers of its plans to eliminate its Telecommunication Systems Division as part of global restructuring. In a letter dated March 21, Brian Metherell, vice president and general manager of the Toshiba America information Systems Telecommunication Systems Division, wrote that the company had “deemed it necessary to wind down our Telecommunication Systems Division (TSD) business starting immediately.”

TSD manufactures IP business telephone systems, digital business telephones, and cloud-based phone systems for SMB enterprises and enterprises with multiple sites/regional locations. Dealers will be able to submit orders through May 22, 2017, although fulfillment of those orders will depend on inventory availability and purchase order acceptance, according to the letter.

“TSD will continue to support dealers in all warranty and maintenance obligations to customers,” Metherell wrote. Additionally, TSD will support services in line with contract terms for VIPedge customers and waive early termination fees for customers who want to transition from VIPedge to another service.

Toshiba Canada will also wind down its telecommunications division, and TSD will no longer sell in Mexico, Metherell wrote.

Dealers in the U.S., Latin America, and Canada were blindsided by Toshiba’s announcement, according to Channel Partners, which provides news and analysis to indirect sales channels in the communications industry.

Dave Michels, an independent analyst with a focus on enterprise communications, called the company’s exit from the telecom services space “both surprising and not at the same time” considering declining sales. In a blog post for Talking Pointz, Michels wrote that although Toshiba “made an excellent PBX” that it had also “become far less visible and innovative than many of its competitors.”

About Converged Communication Systems
At CCS, we provide leading IP telephony/unified communications solutions as well as proactive support for businesses of all sizes across the nation. Our full range of solutions includes on-premise, hosted/cloud, and hybrid cloud offerings. To learn more about our services and solutions, contact us today by calling 877-598-3999 or emailing sales@convergedsystems.com.

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