Carrier Ethernet Switch/Router Market Hits $2 Billion Run Rate in 3Q07, Heavy Reading Reports

Strong growth from Cisco, Huawei, and Hitachi Cable drove the CESR market above $500 million for the first time

PRNewswire
NEW YORK
Dec 6, 2007

NEW YORK, Dec. 6 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers rose 6% quarter-over-quarter and 25% year-over-year in the third quarter of 2007 to $508 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's Light Reading (http://www.lightreading.com/). Sales during the rolling 4-quarter period ending in 3Q07 totaled $1.86 billion.

"We expect the combination of a $2 billion run rate and double-digit year-over-year growth will attract growing attention of financial analysts, investors, and equipment vendor executives to the exciting CESR market," said Stan Hubbard, Senior Analyst at Heavy Reading and author of the Carrier Ethernet Switch/Router Quarterly Market Tracker.

The CESR equipment sector lies at the heart of the broader, booming carrier Ethernet market that includes Ethernet service edge (ESE) routers, carrier Ethernet access platforms (CEAPs), and packet optical transport systems (POTS) -- all of which are monitored by Heavy Reading's Market Tracker services.

"CESR market growth remains impressive in the midst of increased competition in this space," said Hubbard. "Heavy Reading is covering 15 vendors in the Carrier Ethernet Switch/Router Quarterly Market Tracker, including a dozen that are currently generating revenue. Industry feedback suggests the number of CESR suppliers will climb to ~17 by mid 2008."

In 3Q07, service provider spending on business Ethernet, consumer triple-play, and mobile backhaul services helped fuel single-digit, sequential CESR revenue growth in every major region, with EMEA recording the best performance in the quarter. Heavy Reading estimates that more than 412 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 slipped several points to 19% after posting a strong performance in 2Q07. Huawei held onto third place with a 5% share. Hitachi Cable doubled CESR sales in 3Q07 and claimed the No. 4 spot with a 4% share. Nortel finished the quarter in the No. 5 spot with a 3% share.

Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in 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 market sector unavailable from other sources. 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 15 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 Systems, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei Technologies, Juniper Networks, MRV Communications, Nokia Siemens Networks, 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 service.

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

CMP (http://www.cmp.com/) is a media and marketing solutions company serving the technology industry. With the leading online, event, and print brands in all technology market categories, and with services and tools that reach beyond traditional advertising, CMP shapes and influences the technology industry worldwide. CMP publishes highly respected media brands such as TechWeb, InformationWeek, ChannelWeb, CRN, EE Times, and TechOnline; produces major industry events such as Interop, Web 2.0 Expo, XChange, Game Developer Conference, and the Embedded Systems Conferences; and provides business information and marketing services such as the International Customer Management Institute, Semiconductor Insights, and Second Life consulting for technology marketers. CMP 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. For more CMP news, go to cmp.com/news.

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, +1-858-485-8870,
dave.williams@heavyreading.com, or Press and analyst contact: 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/