Thursday, June 6, 2013

Dell'Oro: Service Provider Routing Sales Decline

The Service Provider router market declined in the first quarter of 2013 mostly due to reduced carrier spending in North America and Europe, according to a newly published report by Dell’Oro Group.

Quarterly market revenue growth has been stagnant since mid-2011, which was the last time the market experienced double digit growth.

“Router investments in North America have softened as certain application deployments, such as mobile backhaul, have tapered,” said Shin Umeda, Vice President at Dell’Oro Group.  “In Europe, continuing macroeconomic uncertainty has driven service providers to reduce their capital expenditures by 10 percent in the quarter, and consequently reduce their router deployments,” added Umeda.

Dell'Oro said Cisco Systems, Juniper Networks, Alcatel-Lucent, and Huawei Technologies accounted for 94% of the Service Provider Router market.