Report Shows VoIP Provider Downturn

Communications market research firm Infonetics released a 4Q08 Service Provider Routers and Switches report this week that shows a mixed bag of good and bad news.

“At the end of a great 2008 we saw the effects of carrier cautiousness” across all grades of routers and switches, in what is normally a strong quarter for the Service Provider market, said Michael Howard, Principal Analyst for Infonetics’ Optical, Routing, Switching and Ethernet division.

Worldwide service provider router and switch demand grew 15% in 2008, year-on-year, but suffered a 6% decline in the 4th quarter, compared to 4Q07. IP Edge and IP Core routers showed the strongest gains (up a combined 26% in 2008), while Carrier Ethernet switches dipped 4% for the year.

As expected, Cisco maintains strong leadership in this market segment, despite gains made on the year by Juniper, Alcatel-Lucent, Huawei, Ericsson-Redback and Tellabs. Globally, strong growth in Central and Latin America helped to offset declines in Asia, Europe and North America.