IP/MPLS edge spending surges
more on the topic
Global spending on service provider switching and routing equipment was up 12% from a year ago to $2.4 billion in the first quarter, according to Ovum-RHK.
Among the strongest growth areas was the IP/multiprotocol label-switching (MPLS) edge segment, which grew 32% from a year earlier to nearly $1.15 billion in the first quarter. By comparison, the IP/MPLS core market grew 11% to $516 million. And the IP/Ethernet space grew 6% to $421 million.
In terms of applications, spending on equipment devoted to Ethernet transport and services grew the fastest, up 22% from a year earlier to $823 million. Spending on IP transport and services grew 20% to more than $1.15 billion. And spending on subscriber services or broadband remote access servers grew 11% to $245 million.
Ovum-RHK singled out Alcatel-Lucent for continued strong growth in the IP/MPLS space during its first full quarter as a combined company. And Juniper Networks, which reported a lump of deferred edge router revenue from Verizon Communications in the first quarter, returned to growth after a roughly flat 2006, as predicted by some analysts.
The first quarter’s growth came despite soft spending in the North American wireline market. Spending there was down 9% from a year earlier to $6 billion in the first quarter, Ovum-RHK said, dragged down by a 2% decline in wireline revenue. Continued wireline revenue erosion will force North American wireline carriers to spend modestly this year and slightly less in 2008.
popular articles
Want to use this article? Click here for options!
© 2008 Penton Media Inc.
