Boom Year for Edge and Core Routers: Up 27% and 39% in '05

Between 2002 and 2005, worldwide serviceprovider router and switch revenue grew 37%, from $5.3 billion to $7.2billion, due to robust core and edge router sales, which jumped 77% in thattime, from $2.96 billion to $5.25 billion, according to InfoneticsResearch's Service Provider Routers and Switches report.

Conversely, multiservice switch revenue dropped 5% during that same period,from $2.33 billion to $1.98 billion, after a high of nearly $5 billion in2000.

"The decline of multiservice switches and the rise of core and edge routersare a sign of the times. Service providers are clearly moving toward nextgen IP and Ethernet networks, while decreasing investments in their ATMnetworks. Service provider routers are performing remarkably well, postinga 31% increase between 2004 and 2005," said Michael Howard, principalanalyst at Infonetics.

Market Highlights

-- In 2000, routers made up 47% of the router/switch revenue share, switches made up 53%; in 2005, routers are up to 73% and switches down to 27% of the total-- Cisco posted a strong year in the service provider router market, increasing revenue more than $300 million to $2.8 billion in 2005, though their share decreased from 61% to 53% as Juniper, posting a $390 million gain, increased their share to 26%-- Huawei and Alcatel each improved their overall carrier router revenue share, taking third and fourth positions, respectively, in the worldwide market-- In the multiservice switch market, Nortel continues its lead with 38% revenue share (up from 30% in 2004), followed by Alcatel and Lucent Infonetics releases its 2009 service provider router and switch forecastsFebruary 17. The report tracks IP core and edge routers, and multiservicecore and edge switches. Forecasts and market share are updated quarterlyand cover all regions.

The report provides analysis and rankings for Alcatel, Avici, Ciena, Cisco,Fujitsu, Huawei, Juniper, Lucent, Marconi, NEC, Nortel, Redback,Riverstone, Tellabs, and others.

Download sample data at www.info.infonetics.com. For sales, contact LarryHoward, vice president: larry@infonetics.com, (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier internationalmarket research and consulting firm specializing in data networking andtelecom. Services include quarterly market share and forecasting, end-userand service provider survey research, and service provider capex analysis.

Press Contact:Michael HowardPrincipal Analyst, Co-FounderInfonetics Research(408) 583-3351Email Contact

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