The New IP Router Investment Cycle

Umeda, Shin
November 2005
Business Communications Review;Nov2005, Vol. 35 Issue 11, p40
Trade Publication
This article examines a five-year investment cycle for Internet protocol (IP) networks. Telecommunications and Internet service providers are increasing their capital spending and allocating an increasing portion to IP routers, the key technology in IP networks. In this investment cycle, sales of routers into the service provider market will grow at double-digit annual rates and generate billions of dollars in revenue for manufacturers. Broadband access is reshaping IP networks as service providers transition from a land-grab mentality to a revenue growth mode. There is plenty of controversy around triple-play services, but the opportunity is big enough for service providers to justify the investments in their router networks.


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