Service Provider Router Market to Reach $9 Billion, Dell’Oro Group Forecasts

Video Content Driving Demand for High Speed Networking Technologies

Redwood City, Calif. – January 30, 2007 – According to a recent report by Dell’Oro Group, the trusted source for information about the networking and telecommunications industries, the worldwide market for service provider routers is projected to approach $9 billion by 2011. Routers designed to support data transmission rates of 10 gigabits per second (Gbps)—more than 6,000 times faster than a typical broadband network connection of 1.5 megabits per second—are expected to account for the bulk of the market growth.

“Rapid IP network traffic growth stemming from video content is pushing telecom service providers and cable operators to invest in the highest performance routers for their IP networks,” said Shin Umeda, Vice President of Routers research at Dell’Oro Group. “We expect phenomenal demand for 10 Gbps ports installed in these routers over the next five years—more than a 300 percent growth,” added Umeda.

About the Report

The Dell’Oro Group 5-Year Forecast Report provides a complete overview of the Routers industry with tables covering revenue, average selling prices and unit and port shipments (by speed T1/E1, T3/E3, OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, 100Mbps Ethernet, 1000Mbps Ethernet, and 10 Gbps Ethernet) for router and WAN switch technologies. To purchase this report, call Karen Yang +1.650.622.9400 x222 or email Karen@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.