Carrier switch, router market gain 7pc

BANGALORE, INDIA: Carriers continue to transform their networks from TDM to packet IP to handle the fast-growing Internet, mobile, data, broadband, and video traffic. In 2Q09, service providers spent $2.77 billion worldwide on IP core and edge routers, carrier Ethernet switches, and multiservice ATM switches - a seven percent sequential increase.

This is according to market research firm, Infonetics Research's quarterly report, 'Service Provider Routers and Switches', which tracks IP core and edge routers, carrier Ethernet switches (CES), and multiservice ATM switches.

Michael Howard, co-founder and principal analyst, carrier and data center networks, Infonetics Research, said: "Service providers increased their investments in edge and core routers in 2Q09, showing 13 percent edge and four percent core upticks, which we think will turn into a backend loaded 2009. Of course, we're not out of the woods yet. Year-over-year the carrier router and switch markets are still down considerably. But the overall bump in the market may indicate a bounce off the bottom, at least for 2009."

Report Highlights
Worldwide CES revenue decreased slightly in 2Q09, and is still down significantly year-over-year, although it is expected to pick up over the next four quarters.

The worldwide multiservice ATM switch market appears to have had its "last hurrah" in the last quarter of 2008, with steady decreases since then and severe year-over-year decreases.

Cisco increased its worldwide IP edge router revenue share by 1.5 percentage points in 2Q09.

Although, all the major vendors increased revenue quarter-over-quarter, Alcatel-Lucent, Juniper, Huawei, and Redback all lost share, while Tellabs bumped up 2.3 percent.

CES and Router Vendor Leadership: Global Service Provider Survey,

In another survey, 'Ethernet switch and IP edge router',  Infonetics Research, rated Cisco the highest overall for carrier Ethernet switches, further validating their CES leadership position - although they were beat by the competition in some categories. And Juniper as the leading vendor in IP edge router manufacturers.