HR Launches CESR Market Tracker

Quarterly service appraises worldwide carrier Ethernet switch/router market activity, including detailed market share and revenue projections

August 26, 2005

3 Min Read

NEW YORK -- Heavy Reading (, Light Reading Inc.'s market research division, today launched a brand-new service that tracks one of the telecom industry's most dynamic and important emerging product sectors: the carrier Ethernet switch/router market.

Heavy Reading's new Carrier Ethernet Switch/Router Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in the carrier Ethernet switch/router (CESR) sector, an emerging product category that includes all carrier-class Ethernet switches and carrier Ethernet routers. The primary purpose of these products is to aggregate and/or transport Ethernet traffic in support of enterprise Ethernet services and residential triple-play services.

The new service from Heavy Reading provides granular market data for the CESR sector, including quarter-by-quarter revenue and market-share breakouts for each supplier, revenues by geographic region, and revenue projections through 2008 by region and application type. 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.

Worldwide sales of carrier Ethernet switch/routers grew 43 percent in the second quarter of 2005, to approximately $97 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker. Heavy Reading estimates that the global CESR market will grow from about $158 million in 2004 to $410 million this year and nearly $1.5 billion in 2008, representing a CAGR of over 75 percent.

Demand for CESR products is being fueled by widespread network-build activity related to both Ethernet enterprise and residential triple-play services, notes Heavy Reading Senior Analyst Stan Hubbard, author of the Carrier Ethernet Switch/Router Quarterly Market Tracker. "CESR platforms are driving the transformation of the wireline equipment and telecom services markets by enabling cost-effective network and service convergence," he explains. "Demand for these products is so strong because they represent the cutting edge of the market shift away from TDM-centric networks toward more cost-effective and flexible packet-based infrastructures."

Cisco Systems (Nasdaq: CSCO) continues to lead the CESR sector with an estimated 40 percent market share in 2Q, but its overall share fell from the 43 percent it recorded in 1Q05. Meanwhile, Alcatel (NYSE: ALA) saw its share of the worldwide CESR market nearly triple to 16 percent in 2Q05. That gain pushed Alcatel to the #3 position in CESR market share, just behind Riverstone Networks (OTC: RSTN.PK), at 17 percent.

Equipment vendors analyzed include Alcatel, Atrica, Ciena, Cisco, Extreme Networks, Foundry Networks, Marconi, Nortel Networks, Riverstone, and Siemens.

Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Reports may be purchased individually or as part of an annual subscription.

For more information, contact:

Dave Williams
Sales Director, Heavy Reading
[email protected]

Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
[email protected]

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.

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