SOURCE: Infonetics Research

May 18, 2006 17:29 ET

IP core routers, carrier Ethernet switches/routers up in 1Q06 as broadband boom and IP convergence continue

CAMPBELL, CA -- (MARKET WIRE) -- May 18, 2006 -- IP core routers and carrier Ethernet switches and routers bucked the trend by posting revenue gains in the first quarter of 2006, while all other service provider router and switch categories were down, says Infonetics Research in its latest Service Provider Routers and Switches report.

The overall service provider router/switch market is typically flat or down slightly in the first quarter of the year, as it was in 1Q06, with worldwide revenue dipping 3% to $1.9 billion.

"Three trends are driving IP core routers and carrier Ethernet switches and routers up," said Michael Howard, principal analyst at Infonetics. "Broadband buildouts continue around the world on a massive scale, mobile data traffic is growing feverishly fast, and service providers are moving to next gen IP and Ethernet networks while decreasing investments in ATM networks. Multiservice core switch revenue and ports were up in the first quarter in Asia Pacific, where they are still using more ATM switches, as providers there continue strong mobile buildouts and DSL backhaul. But even in Asia, multiservice switches will decrease every year here on out, as they will worldwide."

Market Highlights

--  IP core and edge routers make up 25% of worldwide service provider
    router and switch revenue in 1Q06; multiservice switches make up 75%
--  Worldwide IP core and edge router revenue will increase 58% between
    2005 and 2009, while multiservice (ATM) core and edge switches will
    decrease 16%
--  IP core router revenue grew 5% to $510 million between 4Q05 and 1Q06
--  Carrier Ethernet switch and router revenue grew 8% in 1Q06
--  Cisco maintains its #1 position in the carrier Ethernet switch and
    router market, Alcatel is second
--  In the overall service provider router and switch market, Cisco is #1
    for revenue, Juniper is #2
--  In the multiservice switch market, Nortel continues its lead followed
    by Alcatel and Lucent
    
Infonetics' report tracks IP core and edge routers, multiservice core and edge ATM switches, and carrier Ethernet switches and routers. Forecasts and market share are updated quarterly and cover all regions. The report provides analysis and rankings for Alcatel, Avici, Ciena, Cisco, Ericsson/Marconi, Fujitsu, Huawei, Juniper, Lucent, NEC, Nortel, Redback, Riverstone, Tellabs, and others.

Download sample data at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com, (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user and service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Michael Howard
    Principal Analyst, Co-Founder
    Infonetics Research
    (408) 583-3351
    Email Contact