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Service Provider WAN Equipment Market Rebounds in 2004

Posted on: Tuesday, 12 July 2005, 09:00 CDT

Service provider CapEx spending made a nice rebound in 2004 with worldwide spending totaling $207 billion, indicating a brighter future for the service provider WAN equipment market, reports In-Stat (http://www.in-stat.com). Service provider CapEx budgets will continue to grow moderately over the next five years, as wireline service providers invest in new triple-play and converged MPLS networks, and wireless service providers build new 3G infrastructure, the high-tech market research firm says. Worldwide service provider CapEx budgets are forecast to reach $278 billion in 2009.

"In-Stat forecasts particularly strong growth in sales of packet telephony media gateways and softswitches, core and edge routers, WiMAX base transceiver stations, and teledatacom servers, in 2005," said Henry Goldberg, In-Stat analyst. "Sales of multiservice switches, optical transport equipment, and DSLAMs should also grow."

A recent report by In-Stat found the following:

-- The largest component of worldwide WAN equipment sales in 2004 was mobile wireless infrastructure, which was about 29% of total worldwide network CapEx budgets.

-- Voice circuit switches, which used to be the largest component of wireline networking hardware, accounted for only about 5% of WAN equipment sales to service providers in 2004.

-- DSLAM port shipments continued to grow strongly in 2004, but revenues declined because of reduced prices due to stiff competition among suppliers.

The report, "State of the Service Provider WAN Equipment Market -- 2005" (#IN0501946WN), provides a concise overview of the worldwide market for service provider WAN equipment. It includes five-year forecasts for mobile wireless infrastructure, voice circuit switches and packet telephony media gateways and softswitches, multiservice switches, edge and core routers, optical transport equipment, broadband access equipment (DSLAMs and WiMAX), and teledatacom servers. Market shares of leading vendors in various categories are also described.

For more information on this report, please visit: http://www.instat.com/catalog/bcatalogue.asp?id=4 or contact Tina Sheltra at 480-609-4531 or tina.sheltra@reedbusiness.com. The report price is $1,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, assessments and market forecasts of semiconductors and advanced communications equipment and services. Our forecasts, analysis, and insights are derived from both a deep technology understanding and a unique research methodology, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical technology, product and success decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. In-Stat analysts gain exceptional insight into geographic marketplaces and specific technologies within markets such as electronics, cable and wireless. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.

Source: Business Wire

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