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Next-Gen Service Provider: November 11, 2008 eNewsletter
November 11, 2008

Carrier Router, Switch Sales Drop

By Gary Kim, Contributing Editor

Carrier grade market router revenue declined five percent, quarter over quarter, yet still surpassing $11 billion in annual shipments for the first time, according to Dittberner Associates, which originally had forecast sales of $12 billion for all of 2008. The firm believes sales will fall short of this figure.

 
The top five router vendors in order of sales share were Cisco, Juniper, Huawei (News - Alert), Alcatel-Lucent and Ericsson. Cisco's quarterly revenue declined by 17 percent after an exceptionally strong 14 percent growth in the second quarter, Dittberner notes. This caused Cisco's (News - Alert) quarterly market share to decline by five percent from the previous quarter, Dittberner says.
 
Juniper's and Huawei's revenue grew slightly while Alcatel-Lucent's posted a modest five percent gain while Ericsson (News - Alert) grew its share by  double digits.
 
The Multiservice ATM switch market declined by eight percent.
Router revenue is expected to remain flat through the end of this year. For next year, as fixed line broadband slows, mobile broadband is expected to take up the slack keeping router revenue at this historically high level, Dittberner forecasts.

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary's articles, please visit his columnist page.

Edited by Jessica Kostek

(source: http://hosted-communications.tmcnet.com/topics/broadband-comm/articles/45124-carrier-router-switch-sales-drop.htm)

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