| 22nd March 2004 - MultiService switch
sales continued to decline in 2003, however, In-Stat/MDR
expects that the market will turn around in 2004.
The year 2003 was the third consecutive year of
declining MultiService switch sales, with worldwide
sales dropping 16% from 2002. According to the high-tech
market research firm, much of this decline, over
the past few years, can be attributed to service
providers having over-invested in equipment during
the bubble of the late 1990s through 2000, as well
as the weakened financial position of many service
providers, and the collapse of competitive carriers.
|
 |
In 2003, service providers continued to invest cautiously
in new equipment, primarily adding new interface cards
to handle new customers and increased traffic growth.
In-Stat/MDR expects the MultiService switch market to
turn around in 2004. Sales began to increase in the
latter half of 2003, as service providers had worked
off much of the excess capacity that existed in their
networks. Various areas of opportunity that will drive
future MultiService switch sales include continued Frame
Relay and ATM traffic growth, ATM aggregation of DSLAM
traffic, the implementation of IP VPN services with
MultiService Switches, the building of wireless infrastructure
based on packet voice/data, the evolution to Voice over
IP networks, and an increase in video surveillance applications.
In-Stat/MDR also reports that:
- The major MultiService switch vendors are Nortel,
Lucent, Cisco, Alcatel, Marconi, and Ericsson. In
2003, Nortel held the leading position in sales for
the third consecutive year, increasing its market
share of total MultiService switch sales to 34%.
- In-Stat/MDR expects that sales will grow 11% in
2004, because of an upturn from a relatively low level
of sales in 2003. For the five-year period, the firm
forecasts a CAGR of 8.6% in total sales.
This Market Alert is drawn from the In-Stat/MDR report,
"MultiService
Switch Market on the Edge of a Turnaround",
which describes worldwide MultiService switch sales
to service providers and enterprises in 2003, along
with the market shares of equipment vendors. Sales are
also segmented into ATM/IP/MPLS vs. Frame Relay sales.
The impact of service provider evolution to converged
MPLS core networks is discussed. Key areas of opportunity
that will drive future MultiService switch sales are
highlighted. Five-year forecasts of the total market,
segmented into sales to service providers and enterprises,
are presented. The report gives detailed profiles and
competitive analysis of all of the major MultiService
switch vendors, as well as, five key other vendors in
this market. The report also profiles a leading service
provider, Verizon, providing perspectives on how MultiService
switches have been used in their network, and their
future needs for this equipment.
Back
to News Reports
|
