The networking market was sluggish in the second quarter, with the remote access market showing no growth at $600m in total revenues, and the router market with slow growth of 5%, taking revenues up to $1.3bn, according to a survey by industry analysts the Dell’Oro Group. The main growth was fueled by low end routers and Frame Relay Access devices which grew 15% over the period. Cisco Systems Inc continues to dominate the router market with a 64% market share, $838m revenues, which grew 6%. That puts it well ahead of second place Bay Networks Inc, with only 10% market share and revenues of $132m, a growth of 6%. 3Com Corp continues to dominate the remote access market with a 37% stake and $221m in sales, up 21%, while Ascend Communications Inc’s 23% of the market showed sales at $136m which fell 22%, reflecting its frantic price slashing, and industry rumors that Ascend is currently struggling to sell its switching equipment (CI No 3,285).
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