Service provider routing spending dips 33% in Q2
The pain continued into the second quarter for the service provider router industry segment, as revenue dropped 33% year over year.
Dell’Oro said in its quarterly report that the recent results contrast the historical seasonality where market revenue increases in the second calendar quarter over the first quarter.
“The Service Provider Router market contracted for a fourth consecutive quarter due to customers pulling back on spending to lower equipment inventory,” said Jimmy Yu, Vice President at Dell’Oro Group.
Yu added, “The drop in quarterly revenue was one of the worst we have seen in this market for over a decade. The only silver lining to this quarter’s results is that we believe the inventory correction is nearly complete.”
According to the research firm, the last time such an event occurred was in 2002.
Among the service provider router technology segments, the steepest decline this quarter was in Core Router. Core Router revenue declined over 50 percent year-over-year.
Leading the market were three vendors—Cisco, Huawei and Nokia. However, the only vendors that gained more than one percentage point of revenue share compared to last year were Nokia and Huawei.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
