August 14, 2006 London, UK -- Ovum-RHK today posted its analysis of global second quarter 2006 service provider packet transport equipment sales. The market in 2Q06 grew to $2.2 billion overall, 6 percent over last quarter and 11 percent above one year ago.
"Over the last year the action has been at the edge as spending shifts from ATM to Ethernet, and as the integration of subscriber management into high-capacity Ethernet routers progresses," said Mark Seery, vice president, IP service infrastructure, at Ovum-RHK. "However, with OC-768/STM-256 40-Gbit/sec upgrades coming in the next year and as network operators start assessing the potential impact of video on demand services over the next five years, we anticipate increased spending in the core as service providers shift their focus to service scaling."
2Q06 highlights for technology-focused market segments:
- IP/MPLS core = $468 million, up 2 percent versus 2Q05
- IP/MPLS edge = $999 million, up 33 percent versus 2Q05
- ATM/MPLS = $437 million, down 7 percent versus 2Q05
- IP/Ethernet = $370 million, down 2 percent versus 2Q05.
2Q06 highlights for application-focused market segments:
- IP transport and services = $ 765 million, up 3 percent versus 2Q05
- Ethernet transport and services= $ 736 million, up 38 percent versus 2Q05
- Legacy transport and services = $ 534 million, down 1 percent versus 2Q05
- Subscriber services / BRAS =$239 million, up 2 percent versus 2Q05.
Ovum-RHK's analysis also reveals that Cisco and Juniper continue to dominate the IP transport and services market with 57 percent and 25 percent market share, respectively. Ethernet transport and services are led by Cisco with 63 percent market share, and Alcatel with 20 percent market share. Legacy transport and services (Frame Relay, ATM, and TDM circuit emulation) are led by Nortel and Alcatel with 21 percent and 17 percent market share, respectively (a combined Alcatel and Lucent would lead this segment with about 38 percent market share). The subscriber services segment is led by Cisco with 44 percent market share, followed by Juniper with 30 percent market share and Redback with 26 percent market share.
IP/MPLS core is led by Cisco and Juniper with 60 percent and 35 percent market share. IP/MPLS edge is led by Cisco, Alcatel, and Juniper with 50 percent, 17 percent, and 16 percent market share, respectively. Combined IP/MPLS platform revenue is led by Cisco, Juniper, and Alcatel with 53 percent, 22 percent, and 12 percent market share, respectively.