Carrier Ethernet access platforms post double-digit growth in 2Q09

OCTOBER 27, 2009 -- Heavy Reading reports that Huawei, Hatteras, and Overture lead the pack in the various CEAP sub-markets.

OCTOBER 27, 2009 -- Worldwide sales of Carrier Ethernet access platforms rose about 17% year-over-year to $935 million in the rolling four-quarter period ending in 2Q09, according to the new Carrier Ethernet Access Platform (CEAP) Quarterly Market Tracker service published by market researcher Heavy Reading. CEAP platforms include Ethernet-over-fiber demarcation platforms and access switches, Ethernet-over-bonded copper pair (G.shdsl and MIMO on DMT) equipment, and Ethernet-over-TDM access circuit products.

"All three of the CEAP product categories examined by Heavy Reading posted sequential growth in 2Q09, in contrast to the previous quarter when only the Ethernet-over-bonded copper pair sub-segment grew," says Stan Hubbard, senior analyst at Heavy Reading and author of the CEAP Tracker. "Ethernet-over-fiber access platform sales appeared to grow most rapidly in 2Q09 and were up nearly 14% quarter-over-quarter as the top five suppliers in this category all appeared to grow revenues above 1Q09 numbers."

Heavy Reading projects that the global CEAP market will increase at a combined annual growth rate (CAGR) of 13.5% between 2008 and 2013, reaching nearly $1.73 billion at the end of this period. Each of the three CEAP sub-segments is expected to have a double-digit CAGR.

"We expect the CEAP market to continue to hold up relatively well even in the midst of economic trouble because of the performance/price advantage that Carrier Ethernet holds over legacy access technologies and because CEAP platforms are being deployed by hundreds of operators and other entities worldwide to support several of the fastest growing telecom services and applications," notes Hubbard. "These include Ethernet business services, consumer triple-play/IPTV/VoD services, and mobile backhaul applications."

Heavy Reading estimates Huawei led the Ethernet-over-fiber access platform market segment with a 14% share in 2Q09. Telco Systems, Cisco, ADVA, and MRV rounded out the top five Ethernet-over-fiber access platform vendors. Ciena posted the largest share gain among established suppliers of Ethernet-over-fiber access products in 2Q09.

Hatteras held onto its commanding lead of the Ethernet-over-bonded copper pair platform segment after posting another quarter of sequential growth in 2Q09. No. 2 Adtran and No. 3 Actelis also reported forward progress in the quarter. Other Ethernet-over-bonded copper pair platform suppliers with notable shares include RAD, NexComm, Positron, and Zhone.

Overture Networks gained several share points and maintained its solid No. 1 position in the competitive Ethernet-over-TDM access circuit market. ANDA edged out RAD for the No. 2 spot. Other suppliers include ADVA and nearly a dozen additional vendors with small market share.

Heavy Reading has identified 74 equipment manufacturers that sell nearly a dozen major types of wireline equipment for Ethernet access, including the three types of next-generation CEAP technologies the research firm tracks: Ethernet-over-fiber access platforms, Ethernet-over-TDM access circuit platforms, Ethernet-over-bonded copper pair platforms.

Heavy Reading's CEAP Quarterly Market Tracker delivers quarter-by-quarter revenue and market-share break-outs for profiled CEAP suppliers and revenue projections through 2013. The quarterly tracking service also analyzes each profiled vendor's market strategy and identifies and analyzes customer wins. It provides a comprehensive list of more than 200 operators and other entities around the world that have purchased CEAP platforms.

The report provides in-depth analysis of 13 vendors that are now generating sales from CEAP products: Actelis Networks, Adtran, ADVA Optical Networking, Aktino, ANDA Networks, Ciena Communications, Hatteras Networks, MRV Communications, NexComm Systems, Overture Networks, RAD Communications, Telco Systems, and Zhone Technologies.

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