Growing IP/MPLS Investments Planned as Carriers Transform Their Data Networks

Growing IP/MPLS Investments Planned as Carriers Transform Their Data Networks

WOBURN, Mass., Dec. 16 /PRNewswire/ -- IP and MPLS continue to permeate data networks as service providers plan increasing investments in those technologies, says Infonetics Research in its latest market research study, Service Provider Plans for IP, MPLS, and ATM 2004. After a single-digit decline in 2003 and a return to growth in 2004, worldwide service provider router and switch revenue will reach $8.4 billion in 2007, up from $4.8 billion in 2003.

Growth in the service provider router and switch market is being fueled by a more positive capex environment combined with a flurry of projects initiated by carriers around the world, including data network convergence, broadband network transformation, broadening the base of private IP/VPN offerings, and ramping up IP/MPLS build-outs.

"The future for IP/MPLS continues to shine brightly, especially as IP traffic continues to grow strongly, with broadband and IP VPN traffic underlying that growth," said Kevin Mitchell, Infonetics Research analyst and lead author of the study. "Further penetration of broadband, increases in bandwidth, and the move beyond pure access to triple play and multiple service offerings delivered via broadband will also drive growth over the next three to five years. There are also several waves of convergence that will bring even more traffic to IP networks, including voice, ATM, frame relay, and mobile voice and data."

Infonetics' study is based on interviews with 26 carriers in North America, Europe, and Asia, 42% of which are incumbent carriers (including two of the four RBOCs and three IXCs in North America). The study examines market and technology trends, drivers, barriers, implementation plans, and expenditures, and the vendor and technology preferences of carriers buying IP routers and multiservice switches.

SAMPLE DATA
-- IP/MPLS growth is strong and accelerating from an average of 59% in
2003 to 73% in 2005
-- Broadband Internet is the biggest driver for IP traffic growth for
respondents, followed by IP VPNs and voice over IP
-- Martini/PWE3, stacked 802.1Q VLANs, and RFC 2547 VPNs will each be used
by over 80% of carriers by 2005 to offer private IP services
-- 81% of respondents use some form of MPLS interworking now, rising to
92% in 2005
-- Respondent average capital expenditures grow 3%, from $1,882 million in
2003 to $1,940 million in 2004



For the table of contents and excerpts, log on to Infonetics Research's Information Portal at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com, 916.933.3543.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

Kevin Mitchell http://www.profnet.com/ud_public.jsp?userid=348430


Source: Infonetics Research, Inc.

CONTACT: Kevin Mitchell, Directing Analyst, Service Provider Voice &
Data, of Infonetics Research, Inc., +1-781-933-9649 or kevin@infonetics.com

Web site: http://www.infonetics.com/


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