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HR: CESR market accelerating

Worldwide sales of carrier Ethernet switch/routers rose 51% quarter-over-quarter in the third quarter of 2005, acco...


December 13, 2005  


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Worldwide sales of carrier Ethernet switch/routers rose 51% quarter-over-quarter in the third quarter of 2005, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by telecommunications market research firm Heavy Reading.

Based on stepped-up and anticipated network build activity related to Ethernet enterprise and residential triple-play services in EMEA, North America, and Asia, Heavy Reading boosted its 2005 market estimate and its multi-year forecast for this market.

Heavy Reading now expects the global carrier Ethernet switch/router (CESR) market to grow from US$190 million in 2004 to US$1.9 billion in 2008, representing a CAGR of 78% over this period.

Cisco Systems Inc. continued to report solid quarterly growth and maintained its strong lead in the market, but it again lost some ground to Alcatel, which doubled its share to 26% in 3Q05 after tripling its share during the previous quarter.

“Alcatel posted simply jaw-dropping growth in Q3,” stated Senior Analyst Stan Hubbard, author of the Carrier Ethernet Switch/Router Quarterly Market Tracker.

“I think many people expected the vendor to emerge as the most serious challenger to Cisco’s dominance, but Alcatel’s ability to triple sales between 2Q05 and 3Q05 caught a lot of observers by surprise.”

According to the study, other leading vendors include number three CESR supplier Riverstone Networks and number four supplier Atrica, “both of which largely pioneered the carrier Ethernet market but have lost share to larger players in recent quarters.”

Further information is available at www.heavyreading.com.