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IP Phone Maker - Service Provider Router Market Gets a Second Wind
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February 24, 2010
Service Provider Router Market Gets a Second Wind
By Marisa Torrieri, TMCnet Editor
 
When industry gurus and financial-analyst types speak of a telecommunications resurgence, more often than not they’re talking about WiFi (News - Alert), 4G and smartphones. The sexy stuff, if you will.

 
But if you’re not in the mobile handset business, fear not, as other telecom segments – including those that make the hardware that powers the most popular gadgets and networks -- are finally making a comeback.
 
Redwood City, Calif.-based market research firm Dell’Oro Group, which covers networking and telecom, reported today that the worldwide service provider router market recorded its highest sequential growth rate in more than two years during the fourth quarter of 2009. Quarterly router sales increased 15 percent to $2 billion dollars, a marked improvement over the sales declines in four of the five previous quarters.
 
The fact that the router market is growing isn’t just good news for the mobile networks market; it’s also good news for the fixed networks market.
 
“The good news is that router manufacturers saw their customers loosening purse strings during the fourth quarter, and that lends confidence for market recovery in 2010,” said Shin Umeda, vice president at Dell’ (News - Alert)Oro Group. “With the worst of the economic downturn behind us, we expect that service providers will start more network projects resulting in meaningful market growth this year.”

Marisa Torrieri is a TMCnet Web editor, covering IP hardware and mobility, including IP phones, smartphones, fixed-mobile convergence and satellite technology. She also compiles and regularly contributes to TMCnet's gadgets and satellite e-Newsletters. To read more of Marisa's articles, please visit her columnist page.

Edited by Marisa Torrieri
 
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