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VoIP Equipment: Service Provider Router Market Witnesses Double-Digit Growth

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TMCnews Featured Article


September 09, 2010

VoIP Equipment: Service Provider Router Market Witnesses Double-Digit Growth

By Rajani Baburajan, TMCnet Contributor


According to a newly published report on the service provider router market, Dell'Oro Group, a provider of market information about the networking and telecommunications industries, said the demand for service provider routers is growing at double-digit rates despite a reduction in Capex by North American and European service providers.


The report notes that service providers are allocating a greater portion of their Capex budgets to strategic technologies such as IP routers, even though they are forced to restrict expenses due to weak economic conditions.

The service provider router market expanded by 15 percent for the first half of 2010 compared to the same period last year, while wireline Capex declined 5 percent for the same period, the agency noted.

Shin Umeda, vice president at Dell' (News - Alert)Oro Group, said, “With the growing demand for IP-based data, voice, and video services and the ongoing expansion of the Internet, service providers are finding it critical to invest in the networks that support these areas.”

The Dell'Oro Group Routers Quarterly Report provides an in-depth coverage of the service provider router market giving details such as Service Provider and Enterprise Router revenue, average selling prices and unit and port shipments for router technologies (by speed), officials at Dell’Oro Group said.

Back in May, Synergy (News - Alert) Research Group also released the results of a study that showed the high-end router market – made up of the routers that the service providers themselves are using – grew 27 percent, year-over-year, TMCnet reported.

This report also found that during the first quarter of 2010, service provider routers and carrier Ethernet enjoyed record growth as service providers and operators are optimizing and building out their networks to support the explosion of video on fixed and mobile networks.


Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Stefania Viscusi







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