Infonetics Research Forecast: Worldwide Service Provider IP Core Router Market Limps to $2.4 Billion in CY2001

Business Wire, Feb 12, 2002

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 12, 2002

Worldwide revenues for service provider core routers totaled $2.4 billion in CY2001, down 4% from CY2000, according to Infonetics Research's quarterly worldwide market share and forecast service, Service Provider Routers and Switches.

"Cisco gained core router revenue market share for the third consecutive quarter in 4Q01, with 79% of the market in 4Q01, but their revenues decreased by 20%," said Infonetics Research analyst and lead author of the report, Kevin Mitchell. "Juniper experienced a dismal quarter, with 19% of the core router market, although their revenue market share for 2001 overall remains at 26%, the same as it was in 2000."

Both Cisco and Juniper are experiencing gains in the edge: Cisco is increasing their revenues from edge routers, and while Juniper's edge router revenues are down this quarter, the percentage coming from edge vs core routers is increasing. Both are investing heavily in R&D and positioning in edge routers because this market is a rare bright spot for manufacturers as service providers continue to invest in edge routers with hopes of increasing revenues by offering more network-based services to their customers.

Other highlights on the core router market:

-- Between 3Q01 and 4Q01, worldwide core router revenues decreased 22% and
worldwide port shipments decreased 15%

-- In CY2001, Cisco captured 72% and Juniper captured 26% of the worldwide core
router revenue market share

-- Cisco's newer and OC192-capable 12400 series revenues are 45% of their core
router revenues

-- Juniper is developing its next core router, which could be available in 2Q02
or 3Q02 and will be accompanied by real customer deployments, as is Juniper's
modus operandi

-- Avici captured 2% of the core router revenue market share in 4Q01; revenues
were down 11%

-- Pluris continues to be involved in lab trials, with two or three more on the
horizon; their revenue target date continues to be pushed out and is now likely
2Q02

-- Charlotte's Web Networks and Alcatel both claim to have shipped core routers
for revenues, but no customer or shipment data is available

-- The 4th calendar quarter is usually a tough quarter due to seasonal
fluctuations, and the slowed economy made 4Q01 especially tough

Service Provider Routers and Switches, which is available February 19, forecasts the market for service provider edge routers and switches, ATM edge switches, edge multiservice switch-routers, edge routers (edge/aggregation routers, subscriber management routers, IP services routers without IPSec, and IP services routers with IPSec), and service provider core routers and switches (ATM core switches, core multiservice switch-routers, and core routers).

Delivered quarterly, this report tracks the trends and growth areas in these markets and identifies which companies are winning key vendor battles within them. The service is delivered electronically and provides worldwide market share and shipment data, and forecast data divided by North America, EMEA, Asia Pacific, and the rest of the world.

Companies tracked in this service include Alcatel, Avici, Celox Networks, Charlotte's Web Networks, Cisco, CoSine, Ellacoya, Equipe Communications, Ericsson, Foundry, Gotham Networks, Juniper, Lucent, Marconi, NEC, net.com, Nortel, Pluris, Quarry Technologies, Redback, Riverstone, Unisphere, Wavesmith Networks, and others.

For the table of contents of this report, which includes methodology notes, please contact:

-- Larry Howard, Vice President, Western North America

larry@infonetics.com, 408.298.7999 x225

-- Paul Ruggeri, Director of Sales, Eastern North America

paul@infonetics.com, 401.826.2160

-- Gautam Sabharwal, Account Manager, Europe and ROW

gautam@infonetics.com, 44 (0) 19.2343.8276

Infonetics Research (http://www.infonetics.com) is a market research and consulting firm covering the networking and telecommunications industries, providing worldwide market share services and US and European demand-side research to network equipment and software manufacturers, service providers, chip and component manufacturers, and the investment community worldwide.