Dittberner: 8% climb in 3Q07 multiservice switch and router revenue

NOVEMBER 16, 2007 -- According to Dittberner's (search for Dittberner) "Multiservice Switch and Router Market Analysis," third-quarter overall market revenue posted a QoQ increase of 8%, reaching $3.2 billion. Router revenue alone was up 11% surpassing $2.5 billion.

Router revenue was propelled by Cisco's 11% increase in router revenue. Juniper had a healthy gain of 15% to hold second place. Huawei had growth of 31% to displace Alcatel-Lucent for third place. Alcatel-Lucent and NEC were down slightly.

The router revenue increase followed a 14% gain in the second quarter. Multiservice switch revenue went in the other direction, declining 15% after a 14% drop in 2Q07. Although router revenue increased 11%, the number of shipped router ports only increased by 1%. This reflects the continued trend to higher-speed, higher-revenue ports. The number of shipped edge router ports decreased slightly, broadly tracking the decrease in IP DSLAM uplinks, which declined due to lower VDSL/VDSL2 shipments.

The number of router ports and their average speed will continue to increase as video traffic grows, and as 3G wireless networks, which are more IP centric, become common, says the company. With ports increasing and average bandwidths rising revenue records will continue to be set in the coming quarters, Dittberner concludes.

Dittberner says its Carrier Grade Switches and Routers Program profiles all major suppliers in these segments. The quarterly market share analysis covers worldwide switches and routers markets in terms of units shipped and revenue by vendors, by equipment (switches, routers), network (core, edge) and protocol interface (IP, Ethernet, Gigabit Ethernet, ATM, Multiservice). The program also provides the regional breakdown of these shipments in greater detail with comprehensive installed base information of routers and switches by supplier, by country and by operator.

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