Dell'Oro: Markets in Decline

REDWOOD CITY, Calif. -- According to Dell'Oro Group, the SONET/SDH Market is $1.1 Billion in 3Q02. This represents 67% of the total optical transport market. "Although the SONET/SDH market has declined Q/Q to $1.1 Billion, it continues to represent a larger portion of the optical transport market as fewer deployments of DWDM have been realized," says Jimmy Yu, an analyst at Dell'Oro Group. "With a fiscal year-end in the 3rd quarter, both Lucent and Siemens gained ground in the SONET/SDH market from their prior quarter where they ranked 3rd and 5th respectively. In fact, Siemens was the only vendor with a sequential growth in SONET/SDH." Table 1: Market Leaders -- Sonet/SDH Revenues

In a separate release: According to Dell'Oro Group, Worldwide Router Market sales declined sequentially 2% to $1.5bn. Demand for high-end routers fell by 7% as telecommunications and Internet service providers continued to scale back capital expenditures. Low End and Midrange Routers, generally purchased by small and medium sized businesses as well as larger enterprises, grew 1% in the third quarter. Table 2: Market Leaders -- Total Router Market

In a separate release: Combined worldwide sales of DSL Access Concentrator and Customer Premises Equipment (CPE) declined 19% Q/Q to $775 million in 3Q02. Shipment volumes declined in all major regions of the world - North America, Europe, and Asia. Access Concentrator sales declined more than CPE, which was the primary reason why companies such as Alcatel, Siemens, and NEC experienced larger declines than companies such as Thomson and Siemens. Table 3: 3Q02 Worldwide Market Leaders -- DSL Access Concentrators + CPE

In a separate release: According to Dell'Oro Group, Gigabit Ethernet port shipments grew 12% during 3Q02, experiencing a fourth consecutive quarter of double-digit sequential growth. Whilst revenues in this segment also increased during the quarter, growth was weaker than that seen for port shipments, due to a higher mix of less expensive copper ports. Shipments for 10-Gigabit Ethernet, the follow-on technology to Gigabit Ethernet, grew 78% during 3Q02, as more vendors started to ship products during the quarter. "Although growth was strong, shipments are still relatively small, due to the high price of this technology relative to Gigabit Ethernet and Fast Ethernet," says Seamus Crehan, a Senior Analyst at Dell'Oro Group. Table 4: 3Q02 Market Leaders (Port Shipments) -- Gigabit Ethernet

Dell'Oro Group