After the global economic downturn contributed to a major service provider spending slowdown in 2009, a new Dell'Oro report revealed that IP/MPLS router revenue bounced back 21 percent in 2010 to $8.6 billion.
Dell'Oro attributes the growth to the ongoing rise in consumer and business mobile and online video traffic drove service providers to increase their spending on routing equipment in 2010.
"Demand for routers accelerated in 2010 as the race for advanced mobile services in the United States and video traffic growth on the Internet drove network operators to increase network capacity," said Shin Umeda, Vice President at Dell'Oro Group, adding that "Coming off of the economic downturn in 2009, network operators had to spend on strategic projects in order to remain competitive."
Evidence of such a routing spending uptick was illustrated well in the Q4 earnings statements of Cisco (Nasdaq: CSCO), Juniper (NYSE: JNPR) and Alcatel-Lucent (NYSE: ALU) which all continued to hold their respective one, two and third spots on Dell'Oro's Worldwide Service Providers Leaders list.
- see the release
- see FierceTelecom's Q4 earnings summary
Infonetics: Alcatel-Lucent takes No. 2 spot in worldwide edge router market