IP Core, Ethernet Routers Up

CAMPBELL, Calif. -- IP core routers and carrier Ethernet switches and routers bucked the trend by posting revenue gains in the first quarter of 2006, while all other service provider router and switch categories were down, says Infonetics Research in its latest Service Provider Routers and Switches report.

The overall service provider router/switch market is typically flat or down slightly in the first quarter of the year, as it was in 1Q06, with worldwide revenue dipping 3% to $1.9 billion.

"Three trends are driving IP core routers and carrier Ethernet switches and routers up," said Michael Howard, principal analyst at Infonetics. "Broadband buildouts continue around the world on a massive scale, mobile data traffic is growing feverishly fast, and service providers are moving to next gen IP and Ethernet networks while decreasing investments in ATM networks. Multiservice core switch revenue and ports were up in the first quarter in Asia Pacific, where they are still using more ATM switches, as providers there continue strong mobile buildouts and DSL backhaul. But even in Asia, multiservice switches will decrease every year here on out, as they will worldwide."

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Infonetics Research Inc.