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1972 marked the founding of Mitel, a telecommunications company that once made industry-leading PBX systems. With customers in 146 countries, Mitel’s products could be found far and wide.
Things took a dark turn in March 2025. With more than $1 billion in debt, the company’s had to file for chapter 11 bankruptcy in order to restructure. This comes at a time when other legacy telecom providers, like Avaya, are ready to let the PBX pass on.
The future for Mitel looks bleak. We’re here to breakdown what’s going on, what this means for current Mitel users, and where the communications industry goes from here.
Mitel has begun a long restructuring process to wipe out a decuple-digit debt largely stemming from a leveraged buyout in 2018. It was an attempt to stay on top of changes in the market, and it seems as though it didn’t pay out in the long term.
What were those changes in the market? Well, I think we all remember what happened in 2020. That was the turning point that woke Mitel up to reality, compelling it to shift priorities from in-office systems to cloud-based communications.
Tragically, Mitel entered the competitive cloud space at a disadvantage and never managed to catch up with the likes of Cisco and Microsoft. Without a niche in modern UC, Mitel remains a name associated with PBXs and outmoded technology.
To its credit, Mitel aims to continue operations during restructuring. It has secured financing to maintain services and support during the process and seems much more determined to change and remain than fold entirely.
Whether it emerges successfully or not, one thing is clear: relying on a legacy PBX vendor going through bankruptcy is a risk that few organizations can afford.
Mitel isn’t the only old-school telecom titan to face hardships such as this. Avaya began similar reconstructions in 2023, and Japan-based NEC dropped support for PBXs outside its home country in 2024.
With copper lines disappearing all over the world, demand for PBXs has all but gone away. Companies like Mitel and Avaya can push out all the UCaaS solutions they want. It won't change the image they’ve built as PBX-centered companies.
Going forward, there won’t be a place for PBXs in the business world. Organizations of all types and sizes are going to need to explore a new path.
Mitel’s bankruptcy should be a wakeup call to any current customers. The time is now to form a Mitel exit strategy. Legacy Telecom proved to be a liability for Mitel, but that doesn’t mean it has to be one for you.
As a Mitel user, the next steps will require you to ask a few important questions:
These questions are simple to answer on paper, but not so much in practice. Fortunately, at Continuant, we have the solution to help organizations like yours modernize without much trouble.
Continuant has been working with Mitel systems and their users for almost thirty years, providing maintenance and support often for systems past their end-of-life date. We helped organizations reduce costs, simplify operations, and gain greater control over their environment.
In the era of the cloud, we continue to do this with our newest solution, Continuant Connect. Continuant Connect is a flexible, low-risk cloud platform that builds a bridge between your existing infrastructure and modern cloud communications. /concon-img.png?width=463&height=308&name=concon-img.png)
Many organizations find that simply ripping out and replacing the old systems is too expensive and may have a detrimental effect on operations. Continuant Connect provides a fast and easy method to migrate users to the cloud with no disruptions. It integrates with platforms like Zoom, Microsoft Teams, and Cisco Webex, and can even enable all three at the same time.
Ultimately, Continuant Connect gives your organization the tools to evolve and the freedom to do so at your own pace. You can keep existing carriers and infrastructure if it’s needed, then as soon as it isn’t, decommission it with no drama.
Mitel’s filing for Chapter 11 bankruptcy carries the implications of soft death, but that may not be the case. With a chance to restructure, Mitel can be reborn like the phoenix. From the ashes of PBXs, desk phones, switchboards, and telecom server rooms will rise a new entity, sleek, resplendent, and well-equipped for the digital age.
With the future fast approaching, Mitel knows it’s time for big changes. With Continuant Connect, even big changes can become confident steps instead of leaps into the unknown. Connect with us and start those steps today.
