Service Provider Router Market Decelerated Sharply in the Third Quarter, According to Dell'Oro Group

Service Provider Router Market Sees Lowest Growth in Seven Quarters

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Nov 28, 2011, 07:47 ET

REDWOOD CITY, Calif., Nov. 28, 2011 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, worldwide demand for Service Provider Routers decelerated sharply in the third quarter of 2011 following six consecutive quarters of year-over-year expansion at double-digit rates. Projected to approach $10 billion for the full year 2011, the Service Provider Routers grew just 3% in the third quarter. The report points to shifts in investment priorities and weak macroeconomic conditions, especially in North America and Europe, as key contributors to the market slowdown.

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"We have seen a trend of Service Providers shifting investments from wireline to wireless infrastructure, which has led to reduced demand for routers," said Shin Umeda, Vice President at Dell'Oro Group. "Use of Service Provider Routers in wireless networks has increased significantly over the past two years, but wireline networks still account for more than 80% of deployments," added Umeda.

The top five Service Provider Router vendors for 3Q11, in ranking order were Cisco, Juniper, Alcatel-Lucent, Huawei, and Ericsson.

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 contact Emily Kendall, call +1.650.622.9400 x223 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