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Dell'Oro Group Forecasts Decline in Service Provider Router Market in 2009

Macroeconomic Turmoil Expected to Curtail Internet Investments

Redwood City, Calif. – February 5, 2009 – According to a recent report by Dell'Oro Group, the trusted source for information about the networking and telecommunications industries, demand for service provider routers will decline for the first time in seven years as the global economic meltdown puts a crimp on telecom equipment investments. In addition to contrasting the weakened spending environment with the fundamental demand drivers for service provider routers, the report describes the market recovery scenario over the next five years.

"Even though the market will be depressed for a few years, we expect sufficient network capacity to be deployed, and we don't expect problems with network performance," said Shin Umeda, Vice President of Routers research at Dell'Oro Group. "Over the past several years, service providers have invested quite a bit in high performance and scalable routers and have redesigned network architectures to more efficiently handle network traffic growth," added Umeda.

About the Report

The Dell'Oro Group 5-Year Forecast Report provides a complete overview of the Routers industry with tables covering Service Provider and Enterprise Router revenue, average selling prices and 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, OC-768/STM-256, 100Mbps Ethernet, 1000Mbps Ethernet, and 10 Gbps Ethernet) for router and WAN switch technologies. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@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 enable 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.

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