IP and Ethernet transport and services spending up 36% over last year

Ovum-RHK posted its analysis of global fourth-quarter 2006 service provider switching and routing equipment sales. Revenues in 4Q06 grew to $2.5B overall, up 8 percent from last quarter and up 17 percent compared to one year ago.
"Alcatel and Cisco continue to experience strong growth, even in what is developing into a trend of hard-to-predict fourth-quarter spending. Juniper also experienced some significant growth in the core for the first time since 1Q06," said Mark Seery, Vice President, Switching and Routing, at Ovum-RHK. "Both IP and Ethernet over MPLS continue to grow strongly, driven by NGN transformation and the impact of video."

4Q06 highlights for technology-focused market segments:

• IP/MPLS core = $535 million, up 19 percent versus 4Q05
• IP/MPLS edge = $141 million, up 40 percent versus 4Q05
• IP/Ethernet = $439 million, up 12 percent versus 4Q05

4Q06 highlights for application-focused market segments:

• IP transport and services = $933 million, up 36 percent versus 4Q05
• Ethernet transport and services = $885 million, up 35 percent versus 4Q05
• Subscriber services/BRAS = $232 million, up 5 percent versus 4Q05