Service Providers Shifting Greater Portion of Capital Budgets to IP Routers, According to Dell'Oro Group

Service Providers Router Market Experienced Strong Growth in First Half of Year

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Sep 08, 2010, 09:15 ET

REDWOOD CITY, Calif., Sept. 8 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, Service Provider router demand is growing at double-digit rates despite a reduction in capital expenditures (Capex) by North American and European service providers. Dell'Oro Group's research shows that the Service Provider Router market expanded by 15 percent for the first half of 2010 compared to the same period last year, while wireline Capex declined 5 percent for the same period.

"Even though service providers have tightened their Capex budgets due to weak economic conditions, they are allocating a greater portion of those budgets to strategic technologies such as IP routers," said Shin Umeda, Vice President at Dell'Oro Group. "With the growing demand for IP-based data, voice, and video services and the ongoing expansion of the Internet, service providers are finding it critical to invest in the networks that support these areas," added Umeda.

About the Report

The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the market with tables covering Service Provider and Enterprise Router 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 technologies. 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