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Service Provider Router Market Slows Dramatically

Growth Rate Expected to Plummet Next Year

Redwood City, Calif. – December 09, 2008 –According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide service provider router market experienced a sharp slowdown in the third quarter, as sales grew at the lowest rate in five years. The report highlights the effect of service provider spending patterns and network construction priorities on the router market for the third quarter of this year, and the effect these factors will carry into 2009.

“Our research and analysis showed that the slower growth had more to do with revenue timing and specific network construction projects, rather than the recent financial market turmoil,” said Shin Umeda, Vice President at Dell’Oro Group. “The full brunt of the economic meltdown will occur next year, and we have incorporated that into our current forecast for 2009. We expect service providers to reign in their spending next year that will significantly reduce the market growth rate in 2009,” 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 and WAN switch technologies. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@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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