Worldwide ATM Switch 2004-2008 Forecast: Industry Research Report

Worldwide ATM Switch 2004-2008 Forecast

Published Date: March 2004

Published By: IDC

Page Count: 9

Order Code: R104-14764

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This IDC study discusses how the ATM switch market continues to struggle as leading network service providers find themselves under pressure to reduce capital expenditures. The overall market declined more than 6% during 2003 and is forecast to decline an additional 3% during 2004. Despite these challenges, the ATM switch remains an essential component of the ability of NSPs to offer frame relay and ATM services ? a $25 billion market and one forecast to grow moderately over the next few years. Expected demand for more than 90 million new DSL subscribers will also help to stimulate sales, as the ATM switch remains a key part of DSL aggregation. Price erosion and technology competition from IP/MPLS routers remain as market inhibitors. The ATM switch will continue as a key part of most large NSP networks, but it is unlikely to be a growth market for network equipment providers. "A key problem for ATM switch suppliers is their quest to remain relevant as all major carriers have publicly committed to an all-IP network" ? Lee Doyle, group VP, Network Infrastructure

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