Report: Gigabit Ethernet Test Gear Sales Up

BANGALORE, India —: The global Gigabit Ethernet and 10 Gigabit Ethernet technology test equipment market will grow from $233 million in 2004 to $627 million in about five years, according to a Frost and Sullivan report.

But as network equipment vendors lower their prices, so will vendors of Gigabit Ethernet test equipment, according to Jessy Cavazos, an analyst for Frost and Sullivan (New York).

"Actual prices paid by customers can be significantly lower than list prices. The actual prices may in fact be reduced by as much as 50 to 60 percent depending on the client," Cavazos said.

Competition is emerging from smaller Asian firms, which usually sell to network equipment manufacturers in countries such as Japan, China and Taiwan. These firms offer lower-priced test equipment with fewer features.

Declining prices are offset by growing demand, enabling network equipment makers to pressure test vendors to lower prices, said Cavazos. He recommended that test vendors pass on the price pressure onto their own suppliers.