The only switches and routers to see increased spending in the first quarter were those based on carrier Ethernet and Internet protocol technology, according to Infonetics Research.

In a quarter that is typically flat or slightly concave, the global market for carrier switches and routers dipped 3% sequentially to $1.9 billion in the first quarter, Infonetics said. But within that market, spending on IP core routers grew 5% sequentially to $510 million, and spending on carrier Ethernet switches and routers grew 8%.

IP core and edge routers made up one fourth (or about $475 million) of the global market for service provider switches and routers in the first quarter, while multiservice switches made up the other three fourths (or $1.425 billion). Between 2005 and 2009, the market for IP core and edge routers will grow 58%, while the multiservice switch/router market shrinks 16%, Infonetics said. And while first-quarter spending on multiservice core switches increased in Asia, as carriers there deployed ATM-based wireless and DSL networks, the multiservice switch market will decline there too starting this year.

Cisco Systems maintained its lead in the carrier Ethernet equipment market as well as the overall service provider switch/router market, Infonetics said. But while Juniper Networks holds the number-two slot in the overall market, Alcatel is second in the carrier Ethernet space. The large but mature multiservice switch market is led by (in order) Nortel Networks, Alcatel and Lucent Technologies.