Fears of market slowdown in 4Q07 were overblown

Wireline equipment grows 21% in 4Q07

For immediate release, 28 March 2008. Ovum today posted its analysis of fourth-quarter 2007 revenue trends and market share changes in the wireline infrastructure segment. Global wireline equipment sales grew nearly 21% in 4Q07, and were up 18% for the full year. The optical networking, switching and routing, and cable TV segments were up 19% or more each, and the DSLAM segment managed a 3% gain.

4Q07 wireline segment highlights:

• Wireline service provider capex = $32.6 billion, up 15.1% versus 4Q06
• Optical networking segment revenues = $4.4 billion, up 30.4% versus 4Q06
• Switching and routing segment revenues = $3.0 billion, up 19.0% versus 4Q06
• Cable TV equipment segment revenues = $0.85 billion, up 24.4% versus 4Q06
• Broadband equipment revenues = $1.1 billion, down 4.2% versus 4Q06
• Huawei, Juniper, and ZTE had the largest gains in rolling four-quarter market share, while Cisco and Nortel had the biggest losses.

"Fears that service providers would reduce spending pre-emptively due to recession worries proved unfounded," said John Lively, Vice President, Network Infrastructure at Ovum. "Global spending on wireline equipment grew by nearly 9% in the fourth quarter of 2007, as service providers like AT&T, Comcast, KDDI, KPN, Swisscom, and TeliaSonera continued to invest in new network capabilities in support of new services."

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For more information or to speak with Dana Cooperson about this research, please contact Sara Kaufman, Public Relations, sara.kaufman@ovum.com, 617 722 4602 or a member of our global PR team listed below.

About Ovum RHK:

Ovum RHK provides market research advisory services to telecom equipment and component vendors and service providers alike. Ovum RHK is a part of Ovum, advising on the commercial impact of technology and market changes in telecoms, with offices in London, Paris, Cologne, Boston, Melbourne, Seoul and San Jose.

About Ovum:

Ovum's primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group.

Ovum's PR contacts:

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