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Report: High-End Router Market Grows 33 Percent A Year

The high-end router market continued its robust growth in the third quarter growing by 33 percent, the Dell'Oro Group said Thursday.

Cisco Systems retained its first place position logging a 25 percent growth rate while Juniper Networks kept its second place ranking and recorded a 57 percent growth rate. "As anticipated," said Shin Umeda, principal analyst for Routers Research, in a statement, "service providers are spending more on core networks during the second half of the year and backend-loading their capital expenditure budgets.

"Service providers are dealing with the increase in network traffic driven by the huge rise in broadband subscribers " more than 10 million broadband subscriber additions in the third quarter of 2004 alone."

Umeda noted also that the surge in high-end router traffic is being driven by telecommunications service providers consolidating their voice and data traffic. Dell'Oro noted that the overall router market has been increasing at a rate of 4 percent a year.