Service Provider Router And Switch Sales Reach $1.68 Billion In 2nd Q

The worldwide market for service provider switches and routers equipment increased by 9% in the second quarter of 2005 to $1.68 billion, according to a recent study by Dittberner.

The growth is primarily attributable to network operators migrating from legacy ATM/Frame Relay networks to converged IP networks, the study adds.

Cisco remains the market leader with 44% of the revenues for switches and routers during the quarter. Juniper is second with 18% market share, while Nortel follows with 16%.

The edge equipment segment accounted for 53% of the revenues, while core equipment made up the remaining 47%. Again, Cisco is the market leader within both these categories, with 51.5 market share of the core network and 36.8% of the edge

The study found that 72% of overall quarterly revenue was for core and edge routers, with the remaining 28% coming from switches. Cisco holds the leading position in core and edge routers, while Nortel was the leader for switches, although its shipments declined by 1%.The quarterly analysis also found that the multiservice routing edge segment is an emerging market, with sales of $162 million in the second quarter of 2005.Cisco leads this market with 42% market share, followed by Juniper at 24%. Alcatel's revenues jumped by 270% quarter-over-quarter to place it third with 13%.