Next-generation services boost service provider kit spending

Global service provider switching and routing equipment sales grew 14% year-on-year in the second quarter, as providers continued to update their networks to deliver next-generation services.

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Figures from research firm Ovum-RHK show that switching and routing kit sales reached £1.3bn in the second quarter.

Ovum-RHK said IP and Ethernet transport and services spending was up 27% and 23% respectively over last year.

These are the two key technology areas to deliver next generation services to end users. BT, for instance, is building out its £10bn IP-based 21st Century Network.

Mark Seery, an analyst at Ovum-RHK, said, "Both IP and Ethernet over MPLS (multi-protocol label switching) continue to grow strongly, driven by next generation service transformation, and the move to packet-based wire-line and wireless networks."

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