Q1 2008 IPTV Equipment Posts Aggressive Growth

Friday, May 16th, 2008
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RENO, NV — Synergy Research Group (SRG) announces the availability of the Synergy Q1 2008 IPTV Market Share report, which shows the overall IPTV equipment market growing 45 percent year over year. The fastest growing IPTV market segment was IPTV Set Top Boxes (STB), which grew 86 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.

“IPTV has transitioned from a forward-thinking play to an essential strategy for Service Providers to counter competitive forces and pursue lucrative revenue opportunities,” says Ray Mota, Ph.D., Chief Research Officer at Synergy Research Group, “This continues to translate into dollars spent on infrastructure equipment providing intelligence and service delivery at the Edge of the Service Provider’s network.”

Q1 2008 Total IPTV Equipment Revenue Rankings

                       Rankings  Q-Q change  Y-Y change
Cisco (NASDAQ:CSCO)           1        5.1%       43.3%
Motorola (NYSE:MOT)           2       27.0%      147.5%
Alcatel-Lucent (NYSE:ALU)     3        5.0%        8.5%
Juniper (NASDAQ:JNPR)         4        5.9%       24.2% 
Ericsson (NASDAQ:ERIC)        5        1.1%       35.3%

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.

Q1 2008 Carrier Ethernet IPTV Revenue Rankings

                  Rankings  Q-Q change  Y-Y change
Cisco                    1        7.4%       50.1%
Alcatel-Lucent           2        5.0%        8.5%
Juniper                  3       16.4%      225.2%
Foundry                  4       -4.3%       39.8%
Extreme                  5       41.6%       23.3%

Source: Synergy Research Group

Furthermore in Q1 2008 Juniper ranked #1 in IPTV BRAS, followed by Cisco Systems and Ericsson. Also, Motorola ranked #1 for IPTV STBs, followed by Cisco.