Carrier Ethernet Switch/Router Market Posts Double-Digit Sequential Growth in 2Q07, Heavy Reading Reports

Strong performances by leading suppliers Cisco, Alcatel-Lucent, Huawei, and Nortel drove market to new all-time high of $468 million in 2Q07

PRNewswire
NEW YORK
Aug 30, 2007

NEW YORK, Aug. 30 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers rose 15% quarter-over-quarter and 36% year-over-year in the second quarter of 2007 to $468 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by 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 2Q07 totaled $1.68 billion.

"The carrier Ethernet switch/router market has been above $400 million for three straight quarters and appears right on track to hit our $1.9 billion target for 2007," said Stan Hubbard, Senior Analyst at Heavy Reading and author of the CESR Quarterly Market Tracker. "The market experienced a nice bounce in 2Q07 after sustaining a sequential decline in the previous quarter due to seasonality."

Service provider spending on consumer triple-play, business Ethernet, and mobile backhaul services helped fuel double-digit CESR revenue growth in every major region, with North America recording the best performance in the quarter. Heavy Reading estimates that more than 386 telecom operators, cable companies, municipalities, and other entities are deploying CESR platforms.

Cisco maintained its dominant lead with a 56% market share, while No. 2 vendor Alcatel-Lucent regained a point to close with a 24% share in 2Q07. Huawei held onto third place with a 5% share. Nortel finished the quarter in the No. 4 spot with a 3% share.

"Several vendors, including Nortel, reported solid customer interest in emerging carrier Ethernet technologies such as Provider Backbone Bridging (PBB) and Provider Backbone Bridging-Traffic Extension (PBB-TE)," said Hubbard. "Heavy Reading and Light Reading are keenly focused on tracking developments with PBB and PBB-TE, as well as more established technologies such as MPLS and VPLS. Interested parties will have the chance to hear service provider opinions on these solutions and get updates on the latest technology trends at Light Reading's Ethernet Expo 2007 in New York in mid-October 2007."

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 250 operators and other entities around the world that have purchased CESR platforms.

The Heavy Reading report analyzes 13 vendors that are now 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/
http://www.unitedbusinessmedia.com/