Metro Ethernet Equipment Growth Projected

SAN JOSE, Calif., July 22 -- Worldwide metro Ethernet equipment revenue hit $2.5 billion in 2002 and is projected to grow 134 percent -- to $5.9 billion -- by 2006, at a compound annual growth rate (CAGR) of 24 percent, according to Infonetics Research market forecast service. Worldwide metro Ethernet equipment ports reached 906,000 in 2002 and will grow 294 percent to 3.6 million by 2006, the company said.

"RPR, Ethernet over SONET/SDH, Ethernet over WDM and ePON are all growing fast, with five-year CAGRs over 20 percent," said Michael Howard, principal analyst and co-founder of Infonetics Research. "The pace of introduction quickened in the first half of 2003 worldwide for both service provider metro Ethernet services and new manufacturer equipment.

"Major service providers are pushing the standardization efforts in groups such as the MEF, EFMA and RPRA, and public interoperability demos show that a new wave of products is entering the market," Howard said. "Between 2002 and 2006, Ethernet will make major inroads into metro telecom equipment spending, accumulating $19.4 billion."

Revenue for customer located equipment (CLE), although smaller, grows proportionally to revenue for metro Ethernet provider equipment in most world regions. The major exception is the fast-growing Ethernet over DSL copper category, especially in Asia Pacific, where most ports are recorded in CLE, Infonetics said.

For more information, visit: www.infonetics.com