European Service Provider Router and Switch Expenditures Grow from $1.5B to $4.5B by 2006; Optical Expenditures Grow $3.1B to $6.3B

European service provider expenditures for optical network equipment grow 103%, from $3.1 billion to $6.3 billion between 2002 and 2006, and router and switch expenditures grow 197%, from $1.5 billion to $4.5 billion between 2002 and 2006, according to a new study released by Infonetics Research, Service Provider Networks: Access, Routing, Switching, and Optical-Europe 2002. As in the US, the metro market continues to be the bright spot in Europe," said Richard Webb, European market analyst with Infonetics Research and co-author of the study. Metro expenditures show strong growth in 2003, and hold a steady growth pattern from 2004 to 2006, as service providers build metro networks to deliver new types of services (storage, tiered QoS, security, VoIP, wireless data, etc.) and manage increasing traffic patterns and broadband aggregation."

WATFORD, UK, July 9, 2002-European service provider expenditures for optical network equipment grow 103%, from $3.1 billion to $6.3 billion between 2002 and 2006, and router and switch expenditures grow 197%, from $1.5 billion to $4.5 billion between 2002 and 2006, according to a new study released by Infonetics Research, Service Provider Networks: Access, Routing, Switching, and Optical-Europe 2002.

As in the US, the metro market continues to be the bright spot in Europe," said Richard Webb, European market analyst with Infonetics Research and co-author of the study. Metro expenditures show strong growth in 2003, and hold a steady growth pattern from 2004 to 2006, as service providers build metro networks to deliver new types of services (storage, tiered QoS, security, VoIP, wireless data, etc.) and manage increasing traffic patterns and broadband aggregation."

Most respondents see broadband as a platform for delivering additional services, which in turn add incremental revenue streams to their broadband undertaking and help alleviate their prime business challenges of revenue growth and profitability," said Kevin Mitchell, directing analyst for Infonetics Researchs service provider networks area and co-author of the study. All respondents who offer broadband services offer additional services over their broadband connections now, with security (VPNs and firewalls) and storage backup being the most popular, now and in 2003."

STUDY SYNOPSIS
Based on in-depth interviews with European service providers, this study examines the complex European service provider marketplace and its segmentation, as well as the implementation plans, trends, strategies, network models, service provisioning and management issues, customers, positioning strategies, preferred manufacturers, challenges, and opportunities of these providers.

The study also sheds light on how service providers are getting more out of existing technologies while mapping out manageable, affordable, scalable, and flexible migration paths to new revenue-generating services. In-depth profiles of three European service providers are included. The study is designed to help product manufacturers understand the response of service providers to new network technologies as well as their plans to roll out new transport, broadband, and metro access services.

FORECAST
This study includes a 5-year European service provider forecast through 2006 of:
· Optical network equipment expenditures, with breakouts for long haul, metro, and CPE
· Service provider router and switch expenditures
· Revenues for:

Infonetics Research (www.infonetics.com) is a market research and consulting firm covering the networking and telecommunications industries, providing worldwide market share services and US and European demand-side research to network equipment and software manufacturers, service providers, chip and component manufacturers, and the investment community worldwide.

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