Lucent Technologies Expands Number One Industry Position in Voice Over IP And Remote Access Markets - market share - Company Business and Marketing

Cambridge Telcom Report, March 20, 2000

According to the latest 1999 market share research reports from three independent analyst firms, Lucent Technologies continued its leadership in the voice over Internet Protocol (VoIP) and remote access segments of the service provider data networking market. The recently issued reports covering 1999 figures are from Cahners In-Stat, Dell'Oro Group and Synergy Research Group.

In 1999, Synergy figures illustrate Lucent's jump into the top position in worldwide VoIP concentrator revenue and port shipments. Lucent garnered 46.6 percent and 48.7 percent of the respective markets, surpassing the nearest competitor by more than 14 percentage points and gaining more than 17 percentage points in each category. Furthermore, Lucent continued to be the overall worldwide market leader in VoIP revenue and port shipments to service providers. With 35.6 percent and 41.5 percent market shares in revenue and port shipments, respectively, Lucent's positions amounted to more than the next two closest competitors combined in each category.

"With Lucent's leadership and experience in both traditional voice and data equipment for service providers, it should be no surprise that they are also the leaders in the convergence of those two worlds -- voice over IP," said Jeremy Duke, Synergy Research Group. "And with the VoIP market expanding quickly, Lucent has the market position, technology and talent to build on its leadership."

In the high-end remote access concentrator (RAC) market, Cahners In-Stat, Dell'Oro and Synergy once again named Lucent the leading supplier to service providers in 1999 based on revenues. Dell'Oro figures positioned Lucent as the market leader with 41.4 percent market share, while Cahners In-Stat and Synergy have Lucent in the top position with 35.2 percent and 34.5 percent of the market, respectively. Dell'Oro also placed Lucent number one in worldwide access concentrator revenue with 31.7 percent market share. In port shipments, Cahners In-Stat and Dell'Oro both placed Lucent in the top position in overall port shipments with 32.7 percent and 28.9 percent, respectively, while Synergy noted Lucent's leadership in the service provider port shipment category, owning 36.6 percent of the market.

"Our ranking as the number one vendor is a direct result of the market leadership established by Lucent's MAX and MAX TNT remote access products and the MultiVoice VoIP solutions that are based on them," said Janet Davidson, president of Access Networks, InterNetworking Systems, Lucent Technologies. "Our recent launch of the carrier-class APX 8000 Multiservice Access Switch with its support for data and VoIP services sends a clear message of our commitment to this market and intentions to build on this lead."

Remote Access

Lucent's industry-leading MAX and MAX TNT solutions are optimized to support deployments that range from small ISP points of presence (POPs), or enterprises, up to those of the largest ISPs and carriers. The recently-introduced APX 8000 Multiservice Access Switch, designed for carriers, large ISPs, CLECs and ITSPs, has more than twice the capacity of its nearest competitor and features unique "universal port" technology that automatically supports data, voice-over-IP, fax-over-IP and virtual private networking services on any port.

VoIP

Lucent's MultiVoice VoIP product line is based on the market leading MAX TNT and MAX 6000 remote access concentrators as well as the new APX 8000 Multiservice Access Switch. The MultiVoice products offer service providers standards-based VoIP gateways designed to support toll-quality VoIP and fax-over-IP service and transparent integration with the public telephone network. The MultiVoice Access Manager is a standards-based H.323 gatekeeper platform for managing call set-up, authentication and signaling between different VoIP gateways in a network.

Network Management

In conjunction with the APX 8000 Multiservice Access Switch, Lucent also recently announced the latest version of its network management software for access services, NavisAccess 5.0. NavisAccess supports all of Lucent's industry-leading remote access and VoIP equipment. With its ability to support more than one million lines and management at the service level, including analog, ISDN, VoIP, frame relay and DSL, NavisAccess 5.0 enables service providers to not only manage the individual devices in their network, but also delivers a true business-level view of the network.

Cahners In-Stat Group (www.cahnersinstat.com) covers the full spectrum of digital communications research from vendor to end-user.

The Dell'Oro Group (www.delloro.com) is a research and consulting firm specializing in business planning and strategic competitive analysis in the networking industry.

Synergy Research Group, Inc. (www.synergyresearchgroup.com) specializes in providing qualitative and quantitative market intelligence to the networking and Internet industries.

Lucent Technologies, based in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, visit its web site at http://www.lucent.com