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Router Market Attains Record Levels in 2006, According to Dell’Oro Group

Service Provider Investment Driven by Internet Video

Redwood City, Calif. – February 19, 2007 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide router market grew to a record level in 2006 in large part on strong sales of service provider routers. The report highlights the key demand drivers behind the market expansion and provides insight into the market share gains and losses of the leading vendors.

“In 2006, we saw the race to deliver video content and television services over the Internet kick into high gear,” said Shin Umeda, Vice President of Router research at Dell’Oro Group. “Service providers invested heavily in high performance routers to beef up the capacity of their networks to accommodate the video traffic. Most router vendors benefited from these investments, and we expect the momentum to carry into 2007,” added Umeda.

2006 Worldwide Service Provider Router Market Leaders (Revenue)
     
Vendor Rank Y/Y Growth
Cisco 1 27%
Juniper 2 1%
Alcatel 3 219%
Huawei 4 38%
Redback Networks 5 78%

About the Report

The Dell’Oro Group Routers Quarterly Report offers complete, in-depth coverage of the market 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, please contact Margaret Miles at +1.650.622.9400 x225 or email Margaret@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.