Global service provider switching and routing equipment sales grew 25% in 1Q08

IP/MPLS core and edge spending grew 43% and 37% respectively over last year

For immediate release, 13 May 2008.

Ovum today posted its analysis of global first-quarter 2008 service provider switching and routing equipment sales. Sales in 1Q08 grew to $3.1 billion overall, a 25% increase compared to the same quarter a year ago.

"There were no significant market share movements in 1Q08," said Mark Seery, Vice President, Switching and Routing at Ovum. "Alcatel-Lucent returned to 2Q07 revenue levels, Juniper continued its recent growth, Redback returned to 1Q07 revenue levels, Alaxala showed some good growth off a small base, and Tellabs was steady. Huawei remains solidly in fourth position."

1Q08 highlights for technology-focused market segments:

• IP/MPLS core = $747 million, up 43% versus 1Q07
• IP/MPLS edge = $1,527 million, up 37% versus 1Q07
• IP/Ethernet = $604 million, up 17% versus 1Q07
• ATM = $213 million, down 34% versus 1Q07

1Q08 highlights for application-focused market segments:

• IP transport and services = $1,581 million, up 40% versus 1Q07
• Ethernet transport and services = $1,173 million, up 28% versus 1Q07
• BRAS = $197 million, down 25% versus 1Q07

1Q08 market share positions (rolling 4Q):

• IP/MPLS total: Cisco (51%), Juniper (20%)
• IP/MPLS core: Cisco (57%), Juniper (31%)
• IP/MPLS edge: Cisco (48%), Alcatel-Lucent (19%), Juniper (15%)
• IP transport and services: Cisco (48%), Juniper (25%)
• Ethernet transport and services: Cisco (58%), Alcatel-Lucent (15%)
• BRAS: Cisco (35%), Juniper (30%), Redback (25%)

- Ends -

For further information:

Details of the 1Q08 results and additional analysis will be published by Ovum's Switching and Routing service which provides consistent quarterly analysis and detailed annual forecasts of equipment sales for North American, European and Asian network operators.

For further details or to speak with Mark Seery about this research, please contact Sara Kaufman, Ovum PR at (617) 722-4602 or sara.kaufman@ovum.com or contact a member of our global PR team listed below.

About Ovum

Ovum is a global advisory and consulting firm. Its 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, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group.

Ovum's PR contacts:

North America:
Sara Kaufman
Tel: +1 617-722-4602
Email: sara.kaufman@ovum.com

EMEA:
Maria Di Martino
Tel: +44 (0) 20 7551 9238
Email: maria.dimartino@ovum.com

Asia-Pacific:
Tanisha Kuckreja
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com