Carrier Ethernet Switch/Router Marketgrowth Accelerates Again in 3Q05

Global CESR Sector is Set to Hit About $585M This Year, After Alcatel Registers Red-Hot Sales and Cisco Records Strong Double-Digit Growth, According to Heavy Reading

PRNewswire
NEW YORK
Dec 12, 2005

Worldwide sales of carrier Ethernet switch/routers rose 51 percent quarter-over-quarter in the third quarter of 2005, on the heels of 40 percent growth in the previous quarter, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by Heavy Reading (www.heavyreading.com), a leading telecommunications market research firm.

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

Cisco (NASDAQ: CSCO) 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 percent 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 and really points to the strength of its comprehensive solution and aggressive sales and marketing efforts."

Other leading vendors include No. 3 CESR supplier Riverstone Networks (OTC: RSTN.PK) and No. 4 supplier Atrica, both of which largely pioneered the carrier Ethernet market but have lost share to larger players in recent quarters.

Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in the CESR sector, including breakouts of each supplier's quarter-by-quarter revenue and market share, revenues by geographic region, and revenue projections through 2008 by region and by application type. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from any other source.

Equipment vendors analyzed include Alcatel, ANDA Networks, Atrica, Ciena (NASDAQ: CIEN), Cisco, Extreme Networks (NASDAQ: EXTR), Foundry Networks (NASDAQ: FDRY), Marconi (NASDAQ: MRCIY) (LONDON: MONI) , Nortel Networks (NYSE/Toronto: NT), Riverstone, Siemens (NYSE: SI; Frankfurt: SIE), and World Wide Packets.

Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Reports may be purchased individually or as part of an annual subscription.

  For more information, contact:

  Dave Williams
  Sales Director, Heavy Reading
  858-485-8870
  dave.williams@heavyreading.com

  Press/analyst contact:
  Dennis Mendyk
  Managing Director, Heavy Reading
  201-587-2154
  mendyk@heavyreading.com

  About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

About Light Reading

Light Reading Inc., a wholly owned subsidiary of CMP Media, is a B-to-B network information provider. Light Reading publishes www.lightreading.com, the leading global content site for the telecom industry; www.byteandswitch.com, a storage networking site; and www.unstrung.com, dedicated to wireless networking. Light Reading is also affiliated with www.heavyreading.com, a market research site for quantitative analysis of telecom technology to carriers, service providers, and vendors.

About CMP Media

Through its market-leading portfolio of trusted information brands in the technology, healthcare, and lifestyles industries, CMP Media has earned the confidence of more professionals and enthusiasts in these fields than any other media company. As a result, CMP is the premier provider of access, insight, and actionable programs designed to connect sellers and buyers in each of these industries in ways that yield superior return on investment.

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, +1-858-485-8870,
dave.williams@heavyreading.com, or Press-analyst contact: Dennis Mendyk,
Managing Director, +1-201-587-2154, mendyk@heavyreading.com, both of Heavy
Reading

Web site: http://www.lightreading.com/
http://www.heavyreading.com/
http://www.byteandswitch.com/
http://www.unstrung.com/