Cisco continues to own half of the world's IP core and edge routers market

Cisco continues to control more than half the world's market for service provider IP core and edge routers, according to figures released today by Infonetics Research. The research firm says Cisco posted a 15% gain in combined IP edge and core router revenue and that Cisco has been the biggest shipper of these routers since 2005.

The biggest gain of the quarter was made by Fujitsu, reports Infonetics, jumping from the No. 9 position to No. 6 worldwide. Huawei, Foundry, and NEC all posted strong double-digit gains in 2Q08, and Juniper and Alcatel-Lucent, the perennial No. 2 and No. 3 players, respectively, in the IP router market, each posted respectable single-digit revenue gains, according to the research firm.

The party may soon be over though. Michael Howard, principal analyst and co-founder of Infonetics says spending by service providers, despite growing between 20% and 30% each year, will slow or level out. "The overriding damper is that telecom capex growth is slowing (with exceptions in India and China), with indications that capital intensity (the ratio of capital expenditures to revenue) is moving downward, coupled with slow, single-digit revenue growth for many carriers," said Howard in a statement.

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