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Router market shows growth

Cape Town, 24 Aug 2004

Worldwide service provider router (SPR) revenue rose to $731.3 million in the second quarter of 2004, a 3.8% increase from the first three months of this year, says international research firm Gartner.

The SPR market is important for measuring the size of the growth of the as these devices provide the backbone for the information superhighway.

[TABLE]According to Gartner, the second quarter marked the fifth consecutive quarter with positive SPR revenue growth. In the first half of 2004, worldwide SPR revenue increased 57% from the first half of 2003.

"The strong growth the industry has experienced in the first half of the year signals that the telecom sector is making a comeback and vendors are cautiously optimistic about the next two quarters of 2004," says Jennifer Liscom, principal analyst for Gartner`s worldwide telecommunications and group.

Liscom predicts a full in the mid-2005 timeframe.

Gartner says Cisco`s revenue market share increased to 57.8% in the second quarter of 2004. Juniper`s market share increased 2.4% to represent 30% of worldwide SPR revenue.

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