Service Provider router market grew at 15% in the first half of 2010, compared to the same period last year, while wireline capital expenditures (Capex) decline by 5% in the same period, according to a new report from Dell’Oro Group.
Dell’Oro Group said that service provider router demand market is growing at double-digit rate, despite a reduction in Capex by North American and European service providers.
Dell’Oro Group vice president Shin Umeda said that even though service providers have tightened their Capex budgets due to weak economic conditions, they are allocating a greater portion of those budgets to strategic technologies such as IP routers.
"With the growing demand for IP-based data, voice, and video services and the ongoing expansion of the Internet, service providers are finding it critical to invest in the networks that support these areas," Umeda said.
