Global Service Provider Switching and Routing Equipment Sales Grew 25% in 1Q08

(Business News & Technology News, 13 May 2008)

First-quarter 2008 service provider switching and routing equipment sales worldwide reached $3.1 billion, up 25 percent compared with the same period last year, according to market analyst Ovum RHK.

"There were no significant market share movements in 1Q08," says Mark Seery, Vice President, Switching and Routing at Ovum. "Alcatel-Lucent returned to 2Q07 revenue levels, Juniper continued its recent growth, Redback returned to 1Q07 revenue levels, Alaxala showed some good growth off a small base, and Tellabs was steady. Huawei remains solidly in fourth position."

First quarter 2008 highlights for technology-focused market segments are the following: the IP/MPLS core posted $747 million in sales, up 43 percent versus the year-ago period; IP/MPLS edge sector, $1,527 million—up 37 percent versus same period last year; IP/Ethernet segment, $604 million, up 17 percent versus 1Q07; and ATM segment, $213 million, down 34 percent compared to the same period last year.

For application-focused market segments, the IP transport and services sector registered $1,581 million in sales, up 40 percent versus 1Q07; Ethernet transport and services, $1,173 million, up 28 percent compared with 1Q07; and BRAS, $197 million, down 25 percent compared with the year-ago period.

As for the market share positions (rolling 4Q), Cisco topped the IP/MPLS overall, with 51 percent, while Juniper account for 20 percent. In the IP/MPLS core segment, Cisco's market share is 57 percent, while Juniper, 31 percent. Cisco again leads the IP/MPLS edge segment, with 48 percent market share, followed by Alcatel-Lucent with 19 percent, and Juniper, with 15 percent.

For the IP transport and services, Cisco continue to lead the market with a 48 percent share, followed by Juniper with 25 percent. Cisco holds 58 percent of the Ethernet transport and services market, followed by Alcatel-Lucent with 15 percent share. In the BRAS segment, Cisco holds 35 percent of the market; Juniper, 30 percent; and Redback, 25 percent.

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