Wireline core on cusp of new phase

15 November 2010 |

The router market is experiencing strong demand as service providers invest heavily to increase network capacity, manage traffic growth and develop new revenue streams.

Dell’Oro Group’s Routers Quarterly Report found that despite a 5% reduction in capex by north American and European service providers, the router market expanded by 15% in the first half of 2010 compared to the same period last year, as service providers looked to exploit advancements in capacity and service functionality in the latest IP routers.

Investment will continue to shift away from TDM-based services and signalling, towards IP-based services, and SIP or IMS-based signalling and applications. However, growth in wireline voice core equipment revenues will be limited to single-digit percentage growth through 2014, due to an increase in voice over broadband subscribers and their need to communicate with those using legacy circuit-switched networks.