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Optical network hardware sales up 20%, service provider router and switch sales up 6% in 2Q06

Worldwide optical network hardware revenue jumped 20% between the first and second quarter of 2006, reaching US$3.1...


September 6, 2006  


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Worldwide optical network hardware revenue jumped 20% between the first and second quarter of 2006, reaching US$3.1 billion in 2Q06, primarily due to big gains by Huawei and Alcatel, says Infonetics Research in its quarterly Optical Network Hardware report.

The market is forecast to grow 14% between 2005 and 2009, when it will reach US$12.3 billion.

“Huawei is the big story this quarter, with sales up an amazing 83% and a larger foothold in the EMEA region,” said Michael Howard, principal analyst of Infonetics Research.

“For the first time in optical network hardware market history, Alcatel is not in first place. Huawei jumped from fourth to first in one quarter, a rare feat. Next quarter may be a different story.”

On the leaderboard: #1 Huawei, #2 Alcatel, #3 Nortel, #4 Tellabs.

Many manufacturers had up quarters: ADVA, Alcatel (up 25%), Cisco (up 23%), ECI, Ericsson, Huawei, Nortel, Siemens, Sycamore, Tellabs, Transmode, ZTE, and others WDM ROADM switch hardware sales are up 23%.

Metro equipment makes up 68% of all optical network hardware revenue, long haul 32%. It’s estimated that 35% of worldwide optical network hardware sales come from North America, 33% from EMEA, 27% from Asia Pacific, and 5% from CALA

In another recent report, Service Provider Routers and Switches, Infonetics reported that worldwide sales of carrier Ethernet switches and routers are up 12% to US$837 million in 2Q06, with annual sales expected to increase 113% between 2005 and 2009.

The overall service provider router and switch market, which includes carrier Ethernet switches, IP core and edge routers, enterprise-class Ethernet switches, and multiservice core and edge ATM switches, is up 6% to US$2.38 billion in 2Q06.

“The service provider multiservice ATM switch segment continues its downward trend (down 24% since this time last year), while the IP and Carrier Ethernet switch and router segments continue to climb,” said Howard.

“Carriers are outfitting their data networks to handle the coming IPTV traffic, and outfitting their mobile networks for the expected onslaught of mobile video and data traffic. Carrier Ethernet-grade equipment meets these needs

Cisco maintained its number one position in the overall service provider router and switch market, with 45% of worldwide revenue, followed by Juniper, then Alcatel, which posted a 16% increase in sales this quarter

Cisco also maintained its number one position in the burgeoning carrier Ethernet switch and router segment, while Alcatel is second.

According to Infonetics, 65% of worldwide service provider router and switch sales come from routers, 18% from carrier Ethernet switches, 16% from multiservice ATM switches, and 1% from enterprise-class Ethernet switches.