"2004 was a turnaround year as service providers began spending to replenish capacity in their networks, add capacity for broadband aggregation, and offer new services, such as MPLS IP VPN and Ethernet services," says Henry Goldberg, In-Stat analyst. "Wireless service providers were a growing, important market for MultiService switch vendors, as they purchased this equipment for Radio Access Network backhaul and other applications."
A recent report by In-Stat found the following:
- In-Stat forecasts 7% growth in worldwide MultiService switch sales in 2005, and a CAGR of about 6% over the next five years.
- The MultiService switch market is mature, and In-Stat expects growth rates in sales to gradually decline over time as the products face stiff competition from routers as service providers evolve to MPLS networks.
- Nortel held the leading position in sales for the fourth consecutive year, attaining a market share of 34% of total MultiService switch sales.