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Service Provider Router Market Sees Surge in Third Quarter

Strong Demand for Edge Routers

Redwood City, Calif. – November 21, 2006 – According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, worldwide sales of service provider routers accelerated in the third quarter with a 30 percent increase over the same period last year. Cisco Systems was the clear leader with more than 55 percent revenue share, followed by Juniper Networks, Alcatel, and Redback Networks.

The report also highlights the notably strong demand for edge routers, which grew at more than twice the rate of core routers and accounted for nearly two-thirds of the $1.5 billion service provider router market.

“Over the past three quarters, the edge router market growth has accelerated as service providers look to prepare their networks for next generation broadband services such as IPTV and VoIP,” said Shin Umeda, Vice President of Router research at Dell’Oro Group. “At the same time, the core router market has slowed, but is still registering solid double-digit growth,” added Umeda.

Worldwide Service Provider Router Market Leaders (Revenue)

Service Provider Router Market	3Q06	Y/Y Growth
Manufacturers' Revenue	$1.5 billion	30%

Vendor	Rank	Y/Y Growth
Cisco	1	33%
Juniper	2	-5%
Alcatel	3	169%
Redback Networks	4	105%

About the Report

The Dell’Oro Group Routers Quarterly Report offers complete, in-depth coverage of the market with tables covering 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 and WAN switch technologies. To purchase this report, please contact Karen Yang, call +1.650.622.9400 x222 or email Karen@DellOro.com.

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.

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