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.
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.
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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