IP core routers and carrier Ethernet switches and routers bucked the trend by posting revenue gains in the first qu...
May 19, 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 US$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 generation IP and Ethernet networks while decreasing investments in ATM networks.
The firm noted that:
* IP core and edge routers made up 25% of worldwide service provider router and switch revenue in 1Q06, while multiservice switches made 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 US$510 million between 4Q05 and 1Q06.
* Carrier Ethernet switch and router revenue grew 8% in 1Q06.