Global service provider switching and routing equipment sales grow 14% in 2Q07, according to Ovum-RHK

IP and Ethernet transport and services spending up 27% and 23% respectively over last year

August 13, 2007- Ovum-RHK today posted its analysis of global second quarter 2007 service provider switching and routing equipment sales. Sales in 2Q07 grew to $2.6 billion overall, a 14 percent increase compared to one year ago.

"Alcatel-Lucent continued its strong IP/MPLS growth, Juniper networks looks to be making a turn around, and Cisco returned to expected revenue levels," said Mark Seery, Vice President, Switching and Routing, at Ovum-RHK. "Both IP and Ethernet over MPLS continue to grow strongly, driven by NGN service transformation and the move to packet-based wireline and wireless networks."

2Q07 highlights for technology-focused market segments:
·         IP/MPLS core = $595 million, up 27 percent versus 2Q06
·         IP/MPLS edge = $1,268 million, up 29 percent versus 2Q06
·         IP/Ethernet = $430 million, up 11 percent versus 2Q06

2Q07 highlights for application-focused market segments:
·         IP transport and services = $1,272 million, up 27 percent versus 2Q06
·         Ethernet transport and services = $906 million, up 23 percent versus 2Q06
·         Subscriber services / BRAS = $248 million, up 4 percent versus 2Q06

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About Ovum-RHK:
Ovum-RHK provides market research advisory services to telecom equipment and component vendors and service providers alike. Ovum-RHK is a part of Ovum, Ltd., advising on the commercial impact of technology and market changes in telecoms, with offices in London, Paris, Cologne, Boston, Melbourne, Seoul and San Jose.

About Ovum:
Ovum's primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

For more information please contact:
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Sara Kaufman
Tel: +1 617-722-4602
Email: sara.kaufman@ovum.com

EMEA:
Claire Booty
Tel: +44 (0) 20 7551 9081
Email: claire.booty@ovum.com

Asia-Pacific:
Tanisha Kuckreja
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com