Carrier Ethernet Switch/Router Market on Track to Reach $1.9 Billion in 2007, New Study Finds

Cisco holds commanding lead of global CESR sector, which grew 36% year-over- year to $408 million in 1Q07, according to Heavy Reading

PRNewswire
NEW YORK
Jun 11, 2007

NEW YORK, June 11 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers (CESRs) rose 36% year-over-year in the first quarter of 2007 to $408 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker published by telecommunications research firm Heavy Reading (http://www.heavyreading.com/), the market research division of CMP Technology's Light Reading (http://www.lightreading.com/). Sales during the rolling 4-quarter period ending in 1Q07 totaled $1.56 billion.

"The CESR market performed well in 1Q07 and hovered above $400 million for the second straight quarter," says Stan Hubbard, Senior Analyst at Heavy Reading and author of the Carrier Ethernet Switch/Router Quarterly Market Tracker. "We witnessed the first sequential decline in the market (6%) since we began tracking it, but this slippage should not be considered too surprising following the whopping 16% quarter-over-quarter market growth in 4Q06."

Cisco recovered several share points that it had surrendered to No. 2 vendor Alcatel-Lucent in 4Q06, and ended 1Q07 with a 57% market share. Huawei lost several share points due to seasonal weakness in China following a strong fourth quarter and a sales-mix shift in favor of its routers, but still maintained the No. 3 position.

"While Nortel -- and to a lesser extent, Nokia-Siemens -- generated headlines with connection-oriented Ethernet (PBB-TE/PBT) in 1Q07, the behind- the-scenes story in 1Q07 was the rise of Foundry into the leadership ranks with its MPLS-based CESR platforms," according to Hubbard. Nortel, Nokia- Siemens, and Foundry each held just under 3% market share.

Heavy Reading's Carrier Ethernet Switch/Router 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 2010 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 sector unavailable from any other source. It provides a comprehensive list of more than 220 operators around the world that have purchased CESR platforms.

The Heavy Reading report analyzes 13 vendors that are generating sales from CESR products or that plan to roll out CESR products. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Atrica, Ciena, Cisco, Ericsson, Extreme Networks, Foundry Networks, Huawei, MRV Communications, Nokia-Siemens, Nortel Networks, 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.

For more information, or to receive a free PowerPoint demo of the Carrier Ethernet Switch/Router 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 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, +1-858-485-8870,
dave.williams@heavyreading.com, or Press-analysts, Dennis Mendyk, Managing
Director, +1-201-587-2154, mendyk@heavyreading.com, both of Heavy Reading

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