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Worldwide SPR market reaches $1.9B in '02

Posted: 25 Feb 2003 ?? ?Print Version ?Bookmark and Share

Keywords:service provider routers? telecom? Dataquest? Gartner? Internet?

The worldwide service provider routers (SPRs) market totaled $1.9 billion in 2002 as SPRs continue to form the basis for additional telecom services and next-generation infrastructure, said Dataquest Inc., a unit of Gartner Inc.

According to Gartner, the SPR market ended 2002 on a positive note with the core SPR segment reaching $185 million in Q4. The Q4 recovery in the core indicates that the excess capacity may have been utilized and carrier space spending will resume in this market.

Further, Gartner noted that core routers (carrier class backbone routers) were driven by the edge router segment (carrier class edge and aggregation routers which consolidate high-speed Internet traffic and provide IP services), as an increase of traffic in the edge eventually results in more bandwidth requirements in the backbone.

"Overall IP routing market growth is a direct result of new market penetration and a trend toward transformation from existing networks to an IP/MPLS consolidation," said Jennifer Liscom, principal analyst for Gartner Dataquest's worldwide telecommunications and networking group. "Customers as a whole are looking for more than just routing functionality. They're requiring value-added services in addition to complementing their existing platforms and expanding to new technologies."

The top two vendors, Cisco Systems and Juniper, accounted for 86.9 percent of all SPR revenue in 2002. Cisco led the market in 2002, with 59.6 percent of worldwide SPR revenue, followed by Juniper with a market share of 27.3 percent.

"Although the SPR market showed signs of leveling off at the end of 2002, the outlook for the market remains relatively flat in 2003," said Liscom. "Strong sales in edge and broadband aggregation routers will lead to recovery in the core, but recovery for the SPR market is still not expected until early 2004."

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