Carrier Ethernet Switch/Router Market On Pace to Double in 2006 to $1.4 Billion, Heavy Reading Estimates

The global CESR sector climbed 15% quarter-over-quarter to $344 million in 2Q06, with Cisco, Alcatel, and Huawei leading the way, according to Heavy Reading

PRNewswire
NEW YORK
Sep 5, 2006

NEW YORK, Sept. 5 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers rose 15% in the second quarter of 2006 and are poised to break the $1.4 billion mark for 2006, according to the Carrier Ethernet Switch/Router (CESR) Quarterly Market Tracker service published by telecommunications research firm Heavy Reading (http://www.heavyreading.com/), a leading provider of carrier Ethernet services and equipment market analysis.

"The more we talk to communications service providers and their equipment suppliers, the more our confidence grows that we will see continued acceleration in the shift of investments away from traditional Sonet/SDH and ATM networks toward converged networks built with carrier Ethernet and IP/MPLS," said Stan Hubbard, Senior Analyst at Heavy Reading and author of the CESR Quarterly Market Tracker. "This shift is taking place on a worldwide basis, with Europe leading the way but Asia and North America not too far behind."

Carrier Ethernet is a huge focus of industry standards bodies and vendor research & development efforts right now, notes Hubbard. "All of the resources and energy pouring into enhancing carrier Ethernet will drive tremendous price/performance improvements in the coming years and solidify carrier Ethernet's role as a technology of choice alongside IP/MPLS for service and network convergence," he says. "The platforms covered in the CESR Quarterly Market Tracker are being deployed to support some of the industry's fastest growing services and applications, such as enterprise Ethernet connectivity, Ethernet access to IP/MPLS VPNs, VOIP, residential triple play/IPTV/VOD, and mobility in the form of wireless backhaul transport."

Cisco and Alcatel have thus far been the most successful in capitalizing on the shift toward carrier Ethernet in support of residential and enterprise services, according to the CESR Quarterly Market Tracker. Cisco and Alcatel maintained their positions as the No. 1 and No. 2 market leaders, respectively, as both posted record CESR sales in 2Q06.

The battle for the market share ranks behind Cisco and Alcatel continued to intensify among larger equipment suppliers that offer end-to-end carrier Ethernet and IP/MPLS solutions. China's Huawei Technologies overtook Lucent for the No. 3 share position in 2Q06, due primarily to ramping sales in support of residential triple-play/IPTV services. Huawei has significantly stepped up its carrier Ethernet-related activities since late 2005 and now has a large number of CESR customers throughout Asia, Europe, Russia, Latin America, and the Middle East. Although Lucent slipped to No. 4, its revenues began to recover in 2Q06, due in part to increased traction related to wireless backhaul applications.

Heavy Reading's CESR Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in the CESR sector, including quarter-by-quarter revenue and market-share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2009 by region and application. 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 other sources. It provides a comprehensive list of nearly 200 operators worldwide that have purchased CESR platforms.

The Heavy Reading report analyzes 14 vendors that are now generating sales from CESR products or that plan to roll out CESR products in the near term. Equipment vendors examined include Alcatel, ANDA Networks, Atrica, Ciena, Cisco, Ericsson, Extreme Networks, Foundry Networks, Huawei, Lucent, MRV Communications, Nortel Networks, Siemens, and World Wide Packets.

The Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.

For more information, or to receive a PowerPoint demo of the CESR Quarterly Market Tracker, please 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

Founded in 2000, Light Reading Inc. (http://www.lightreading.com/) is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. It reaches an extensive audience of executives and technologists within the telecom and enterprise networking communities, as well as the financial/industry analysts and investors who track these sectors. Light Reading was acquired by United Business Media in August 2005, and operates as a unit of CMP Technology.

About CMP Technology

CMP Technology (http://www.cmp.com/) is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals 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 ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion.

SOURCE: Heavy Reading

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

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