Network Transformations Will Drive Global Carrier Ethernet Switch/Router Market to $4.7 Billion in 2012, Heavy Reading Reports

Alcatel-Lucent, Hitachi Cable, and Foundry Gained CESR Share With Double-Digit Growth in 4Q07, New Report Finds

PRNewswire
NEW YORK
Apr 16, 2008

NEW YORK, April 16 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers rose 4% quarter-over-quarter and 15% year-over-year in the fourth quarter of 2007 to reach $508 million, according to the latest Carrier Ethernet Switch/Router Quarterly Market Tracker published by Heavy Reading (http://www.heavyreading.com/), the market research division of TechWeb's Light Reading (http://www.lightreading.com/). The CESR market grew at an annual rate of 25%, from $1.50 billion in 2006 to $1.88 billion in 2007.

"2007 was an exciting year for CESR suppliers, with booming sales driven by widespread service provider investment in Ethernet-based convergence networks to support next-generation business services, IPTV/VOD services, and mobile backhaul transport services," says Stan Hubbard, Senior Analyst at Heavy Reading and author of the CESR Quarterly Market Tracker. "We also witnessed the shaping of a very dynamic market, with two vendor acquisitions, multiple new entrants, and several new product launches and significant platform upgrades."

"The ongoing global shift from circuit-based TDM networks to packet-based Ethernet/MPLS promises to drive the CESR market forward at a CAGR of 20% through 2012," notes Hubbard. "Carriers cannot seem to get enough Ethernet, and many Tier 1 and 2 operators are forging ahead with major Ethernet-related network initiatives, from access to the metro core and network provider edge."

Cisco maintained its dominant lead in this market but saw its quarterly share erode from 59% in 3Q07 to 54% in 4Q07. Cisco's sales declined in the face of intensifying competition for the first time since Heavy Reading has been tracking the CESR market. No. 2 Alcatel-Lucent gained a couple of points to 20%. Huawei maintained third place with 5% and just edged out No. 4 Hitachi Cable, whose share climbed to 4.9%. No. 5 Nortel continued to express optimism about anticipated PBT-related sales growth in 2008. No. 6 Foundry grew to a 3% share with the help of another strong quarterly performance.

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 2012 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 14 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, Ciena, Cisco Systems, ECI Telecom, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei, Juniper Networks, MRV Communications, Nokia Siemens Networks, and Nortel Networks.

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 TechWeb

TechWeb, the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 10 million business technology professionals actively engage with and rely on our global face-to- face events, including Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, Wall Street & Technology, TechNet and MSDN Magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, custom media, research, and analyst services. TechWeb is a division 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 $2.5 billion.

SOURCE: Heavy Reading

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

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