Service Provider Router Demand Softens, According to Dell'Oro Group

Cisco and Juniper Gain Ground in Service Provider Router Market in First Quarter 2013

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Jun 06, 2013, 09:00 ET

REDWOOD CITY, Calif., June 6, 2013 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the Service Provider router market declined in the first quarter of 2013. Quarterly market revenue growth has been stagnant since mid-2011, which was the last time the market experienced double digit growth. This quarter's decline is mostly attributable to reductions in the North America and Europe regions.

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"Router investments in North America have softened as certain application deployments, such as mobile backhaul, have tapered," said Shin Umeda, Vice President at Dell'Oro Group. "In Europe, continuing macroeconomic uncertainty has driven service providers to reduce their capital expenditures by 10 percent in the quarter, and consequently reduce their router deployments," added Umeda.

Cisco Systems, Juniper Networks, Alcatel-Lucent, and Huawei Technologies were the market share leaders of the Service Provider Router market, accounting for 94 percent of first quarter revenue. Cisco remained the share leader in the market for the first quarter. Juniper, Alcatel-Lucent, and Huawei were the second, third, and fourth-ranked vendors, respectively.

Worldwide Service Provider Router Market Leaders (Revenue)

Vendor	1Q13 Rank	Y/Y Growth
Cisco	1	-19%
Juniper	2	6%
Alcatel-Lucent	3	-6%
Huawei	4	14%

About the Report
The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the Service Provider Core and Edge and Enterprise Router markets for current and historical time periods. The report includes qualitative analysis and detailed statistics for vendor market shares, revenue, average selling prices, and unit and port shipments. To purchase this report, please call Julie Learmond-Criqui at +1.650.622.9400 x244 or email [email protected]

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.

SOURCE Dell'Oro Group