Router Market Posts Strongest Quarterly Growth since 2000, According to Dell'Oro Group; New Product Cycles Driving Demand

Business Wire, August 18, 2005

REDWOOD CITY, Calif. -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the Router market recorded the highest quarter-over-quarter growth rate in more than four years. Worldwide sales of routers grew 8% in the second calendar quarter of 2005 to a total of $2.5 Billion. New product cycles drove router demand at the far ends of the router technology spectrum. At the high-end of the router market, where systems can sell for millions of dollars each, sales grew 15% sequentially, while at the low-end, where devices sell for as little as five hundred dollars, sales grew by an equally impressive 14%.

"Telecommunications service providers are investing heavily on new high-end router technologies to transform their network architectures," said Shin Umeda, Principal Analyst of Router research at Dell'Oro Group. "At the same time, businesses are purchasing low-end routers at record rates to take advantage of the performance and feature improvements of the latest products."

About the Report

The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the market with tables covering revenue, average selling prices, unit and port shipments (by speed T1/E1, T3/E3, OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, 100Mbps Ethernet, 1000Mbps Ethernet, and 10 Gbps Ethernet), and price for router and WAN switch technologies. To purchase this report, call 1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at 1.650.622.9400 or visit www.DellOro.com.