SPR market on the slide

The worldwide service provider router (SPR) market fell by 7% in Q2 2002, according to Gartner Dataquest. Used mainly within service provider networks, SPRs are carrier-class routers capable of supporting multi-gigabit bandwidth.

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By  Neil Denslow Published  September 8, 2002

The worldwide service provider router (SPR) market fell 7% in Q2 2002, according to Gartner Dataquest.

SPRs are defined as carrier-class routers capable of providing multi-gigabit bandwidth for high-speed WAN interfaces. Generally, these devices are used within service provider networks.

Cisco Systems had a huge worldwide lead in the market racking up revenue of US$300 million in the second quarter, over 60% of the total sales. Jupiter was a distant with sales of US$87 million. Unisphere (US$34.7 million), Redback (US$33 million) and Nortel (US$ 15.1 million) rounded out the top five.

However, these sales were in a declining market, which Jennifer Liscom, principal analyst for Gartner Dataquest's worldwide telecommunications and networking group, attributed to “the slowdown in telecom spending and the fact that service providers still have excess capacity in their networks that will last them at least two more quarters.”

"SPR sales are indirectly driven by the increase in demand for higher speed Internet access," she added.

In terms of total shipments, Cisco was again in a dominant position with double the number achieved by Jupiter, 1862 compared to 720. Again, these two were way ahead of the next three, Unisphere (331), Redback (232) and Nortel (94), however, Liscom sees signs of hope for Cisco and Jupiter’s challengers.

"The worldwide SPR market is still relatively young, so other vendors still have time to capitalise on this emerging industry. Many technology suppliers will have products by 2003, and they will begin to challenge the incumbents as service providers re-evaluate their next-generation product needs and begin spending," she argued.

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