IPTV Equipment Posts Aggressive Growth in Q2 2008

Friday, August 15th, 2008 
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According to Synergy Research Group IPTV Equipment Grew Nearly 40 Percent

RENO, NV — Synergy Research Group (SRG) announces the availability of the Synergy Q2 2008 IPTV Market Share report, which shows the overall IPTV equipment market growing 30.3 percent year over year. The fastest growing IPTV market segment was Core Router IPTV, which grew 37.9 percent year over year.

The latest Synergy report finds that IPTV equipment sales continue to be driven by upgrades to Carrier networks, especially at the Edge, handling the surge in subscriber and traffic growth. Synergy anticipates Worldwide IPTV subscribers to increase substantially over the next two years and approach close to 40 million IPTV subscribers by 2010. Synergy research further finds that IPTV deployments in China and South Korea are developing at an accelerated pace. In Europe, Service Providers continue to heavily invest in IPTV deployments.

“The Service Providers that have been early adopters of IPTV have arrived at an inflection point that is no longer driven by market share gain but by profit,” says Ray Mota, Ph.D., Chief Research Officer at Synergy Research Group, “The requirement to increase IPTV network efficiency has become vitally important, IPTV equipment manufacturers that realize this shift in perspective can tailor their strategies accordingly.”

Q2 2008 Total IPTV Equipment Revenue Rankings:

                 Rankings   Q-Q change   Y-Y change
                 --------   ----------   ----------
Cisco Systems           1        16.5%        44.8%
Alcatel-Lucent          2         6.8%         4.2%
Juniper                 3         8.7%        39.4%
Motorola                4       -38.9%        -5.3%
Ericsson                5         0.5%        59.2%

Source: Synergy Research Group

The aggressive growth in router sales supporting IPTV equipment deployments continues, especially at the Edge. Such investments are increasing the velocity of Carrier Ethernet deployments. The lower costs associated with Carrier Ethernet continue to drive Service Providers’ decisions to deliver IPTV using Carrier Ethernet at the Edge of their next-generation network.

Q2 2008 Carrier Ethernet IPTV Revenue Rankings:

                 Rankings   Q-Q change   Y-Y change
                 --------   ----------   ----------
Cisco Systems           1        13.8%        40.7%
Alcatel-Lucent          2         6.8%         4.2%
Juniper                 3        16.8%       215.7%
Foundry                 4        -0.3%        29.7%
Extreme                 5        11.2%        75.9%

Source: Synergy Research Group

Synergy offers this timely quantitative research also in its new Web 2.0 research tool, Synergy Interactive Analysis (SIA)™, a patent-pending research tool that enables users to dynamically interact with and co-create quantitative market intelligence in a simple point and click Web based environment.