Carrier Ethernet Switch/Router Market Hits $2 Billion Run Rate in 3Q07, Heavy Reading...

Carrier Ethernet Switch/Router Market Hits $2 Billion Run Rate in 3Q07, Heavy
Reading Reports
Strong growth from Cisco, Huawei, and Hitachi Cable drove the CESR market
above $500 million for the first time

NEW YORK, Dec. 6 /PRNewswire/ -- Worldwide sales of carrier Ethernet
switch/routers rose 6% quarter-over-quarter and 25% year-over-year in the
third quarter of 2007 to $508 million, according to the Carrier Ethernet
Switch/Router Quarterly Market Tracker service published by Heavy Reading
(www.heavyreading.com), the market research division of CMP's Light Reading
(www.lightreading.com). Sales during the rolling 4-quarter period ending in
3Q07 totaled $1.86 billion.
"We expect the combination of a $2 billion run rate and double-digit
year-over-year growth will attract growing attention of financial analysts,
investors, and equipment vendor executives to the exciting CESR market," said
Stan Hubbard, Senior Analyst at Heavy Reading and author of the Carrier
Ethernet Switch/Router Quarterly Market Tracker.
The CESR equipment sector lies at the heart of the broader, booming
carrier Ethernet market that includes Ethernet service edge (ESE) routers,
carrier Ethernet access platforms (CEAPs), and packet optical transport
systems (POTS) -- all of which are monitored by Heavy Reading's Market Tracker
services.
"CESR market growth remains impressive in the midst of increased
competition in this space," said Hubbard. "Heavy Reading is covering 15
vendors in the Carrier Ethernet Switch/Router Quarterly Market Tracker,
including a dozen that are currently generating revenue. Industry feedback
suggests the number of CESR suppliers will climb to ~17 by mid 2008."
In 3Q07, service provider spending on business Ethernet, consumer
triple-play, and mobile backhaul services helped fuel single-digit, sequential
CESR revenue growth in every major region, with EMEA recording the best
performance in the quarter. Heavy Reading estimates that more than 412 telecom
operators, cable companies, municipalities, and other entities are deploying
CESR platforms.
Cisco maintained its dominant lead with a 56% market share, while No. 2
vendor Alcatel-Lucent slipped several points to 19% after posting a strong
performance in 2Q07. Huawei held onto third place with a 5% share. Hitachi
Cable doubled CESR sales in 3Q07 and claimed the No. 4 spot with a 4% share.
Nortel finished the quarter in the No. 5 spot with a 3% share.
Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker
delivers a complete accounting of telecom equipment manufacturer revenues in
CESR sector, including quarter-by-quarter revenue and market share breakouts
for each supplier, sales by geographic region and application, and revenue
projections through 2010 by region and application. The quarterly tracking
service also analyzes each vendor's market strategy and identifies and
analyzes customer wins, providing granular insight into this emerging market
sector unavailable from other sources. It provides a comprehensive list of
more than 250 operators and other entities around the world that have
purchased CESR platforms.
The Heavy Reading report analyzes 15 vendors that are now generating sales
from CESR products or that plan to roll out CESR products. Equipment vendors
examined include Alcatel-Lucent, ANDA Networks, Atrica, Ciena, Cisco Systems,
Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei
Technologies, Juniper Networks, MRV Communications, Nokia Siemens Networks,
Nortel Networks, and World Wide Packets.
The Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed
in PowerPoint and Excel formats. Quarterly reports may be purchased
individually or as part of an annual subscription service.
For more information, or to receive a free PowerPoint demo of the Carrier
Ethernet Switch/Router Quarterly Market Tracker, please contact:
Dave Williams
Sales Director, Heavy Reading
858-485-8870
dave.williams@heavyreading.com

Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
mendyk@heavyreading.com

About Heavy Reading
Heavy Reading is an independent market research organization offering
quantitative analysis of telecom technology to service providers, vendors, and
investors. Its mandate is to provide the comprehensive competitive analysis
needed today for the deployment of profitable networks based on
next-generation hardware and software.
About CMP
CMP (www.cmp.com) is a media and marketing solutions company serving the
technology industry. With the leading online, event, and print brands in all
technology market categories, and with services and tools that reach beyond
traditional advertising, CMP shapes and influences the technology industry
worldwide. CMP publishes highly respected media brands such as TechWeb,
InformationWeek, ChannelWeb, CRN, EE Times, and TechOnline; produces major
industry events such as Interop, Web 2.0 Expo, XChange, Game Developer
Conference, and the Embedded Systems Conferences; and provides business
information and marketing services such as the International Customer
Management Institute, Semiconductor Insights, and Second Life consulting for
technology marketers. CMP is a subsidiary of United Business Media
(www.unitedbusinessmedia.com), a global provider of news distribution and
specialist information services with a market capitalization of more than $3
billion. For more CMP news, go to cmp.com/news.
SOURCE Heavy Reading

Dave Williams, Sales Director, +1-858-485-8870,
dave.williams@heavyreading.com, or Press and analyst contact: Dennis Mendyk,
Managing Director, +1-201-587-2154, mendyk@heavyreading.com, both of Heavy
Reading