MAR 3, 2000, M2 Communications - MURRAY HILL NJ -- Continuing its revenue growth
in the wide area network (WAN) market, Lucent Technologies (NYSE: LU) ranks as
the world leader in providing WAN switching solutions to service providers.
According to recent reports from Cahners In-Stat Group, Dell 'Oro Group, Ryan
Hankin and Kent (RHK), Synergy Research Group and Vertical Systems Group, Lucent
has shown significant growth in 1999 in all WAN service provider segments
including ATM, Frame Relay and Multiservice WAN, with the largest increase in
the ATM to service provider segment. The Vertical Systems Group "1999 Broadband
Industry Update" report shows Lucent continuing to gain market share capturing
the number one position in ATM equipment sales to service providers with 36.1
percent market share representing a significant 14 percentage point gain over
1998.
Lucent's worldwide WAN leadership consists of the following segments:
asynchronous transfer mode (ATM), Frame Relay, and Multiservice WAN switching,
which combines ATM and Frame Relay.
Lucent's market leadership in these segments is based on its core data switching
products including the GX 550 Smart Core ATM switch, CBX 500 Multiservice WAN
switch and B-STDX 9000 Multiservice WAN switch.
ATM Growth and Leadership Synergy Research Group, Vertical Systems Group and
Cahners In-Stat show Lucent increasing its foothold as the leader in providing
ATM equipment to service providers in 1999. The latest report from Synergy on
the Service Provider Multiservice ATM WAN market shows that Lucent had a 16
percentage point lead in 1999 over the nearest competitor and expanded its lead
to 38.2 percent market share.
According to Vertical's "1999 Broadband Industry Update", Lucent has
dramatically increased its share in both the worldwide ATM Carrier Switch and
ATM Internet Service Provider (ISP) Switch segments, capturing the number one
positions with 33.7 percent and 43.2 percent share respectively. In the ATM
Carrier Switch segment, Lucent gained 12 percentage points compared to 1998, and
in the ATM ISP segment, Lucent gained 20 percentage points, nearly doubling its
market share over 1998.
"ATM switch products from the Ascend acquisition enabled Lucent to catapult to
the top of ATM Carrier and ISP segments," said Rick Malone, principal at
Vertical Systems Group. "Demand for ATM equipment is robust as service providers
throughout the world rely on this technology for reliable, high capacity
backbone transport.
ATM equipment revenue is growing at a projected 33 percent to 9.4 billion in
2002." According to the latest report from Cahners In-Stat on the Service
Provider ATM WAN Equipment market, Lucent increased its lead in 1999 to 34.4
percent share, which is a gain of 9 percentage points over 1998.
The latest report from RHK on "Core Switching and Routing" covering the first
half of 1999, also confirms Lucent's growth and number one position in the ATM
WAN switching market. According to RHK, which for the first time focuses
exclusively on core ATM equipment for service providers as one of its reporting
categories, Lucent led in the first half of 1999 with 66 percent market share.
"ATM continues to be a leading network transport offering the Quality of Service
and traffic management demanded by carriers today. The build out of next
generation ATM backbones is being fueled by the need to rapidly deploy digital
subscriber line (DSL), packetized voice and wireless networks," said Steve
Kaufman, vice president and general manager, Core Switching, Lucent Technologies
InterNetworking Systems group. "As a leader in ATM and Frame relay equipment for
service providers, our business continues to be strong as demonstrated by
several recent customer announcements including China Unicom, Telefonica,
Embratel and AT&T Canada. Lucent's multiservice core switching solutions provide
service providers with the highest performance, scalability, capacity and
availability for building next generation networks." Multiservice WAN Switching
Growth and Leadership Lucent's gains in the ATM market are also adding to the
company's lead in Multiservice WAN switching for service providers, which
includes combined ATM and Frame Relay. According to Synergy, Vertical, Cahners
and Dell 'Oro, Lucent has increased its leadership position in 1999 providing
Multiservice WAN switching solutions to service providers.
The latest report from the Dell 'Oro Group, covering the Service Provider
Multiservice WAN Switching segment for 1999, shows Lucent is ahead of the market
by as much as 20 percentage points over the nearest competitor, expanding its
lead to 38.8 percent share, representing a gain of nearly 5 percentage points
over 1998. The most recent report from Synergy on the Worldwide Service Provider
Multiservice WAN market, shows Lucent has expanded its lead in 1999 to 38.3
percent market share. Based on the report from Vertical, Lucent gained more than
9 percentage points (from 1998) in the Service Provider Multiservice Switch
market segment, holding on to the number one position with a 36.5 percent
worldwide share for 1999. And, according to Cahners' latest report on the ATM
WAN and Frame Relay Switch market, Lucent continued its lead in 1999 with 37
percent market share.
Lucent also led in the overall Multiservice WAN switch market according to Dell
'Oro, Synergy and Cahners. Based on the report from Dell 'Oro, Lucent captured
the number one position in 1999 with 31.2 percent share, which represents an 8
percentage point growth over 1998. Synergy's latest report shows Lucent
expanding its lead with 29.6 percent market share. And, according to the latest
report from Cahners, Lucent widened its leadership position in 1999 with 28.6
percent share, representing a 6 percentage point gain compared to 1998.
Frame Relay Growth and Leadership
The Vertical Systems Group report shows Lucent continued its leadership in
providing Frame Relay equipment to service providers in 1999 with a 15
percentage point lead over the nearest competitor, expanding its lead to 37.2
percent market share. For the worldwide Frame Relay Carrier Switch segment,
Vertical showed that Lucent enhanced its ongoing leadership with 33.1 percent
market share in 1999. And, for the Frame Relay ISP Switch segments, Vertical
showed that Lucent increased its ongoing leadership position with 47.6 share in
1999, which represents a gain of nearly 6 percentage points compared to 1998.
Lucent's WAN Switching Solutions
Lucent's Multiservice WAN solutions include the GX 550 Smart Core ATM switch,
CBX 500 and B-STDX 9000 Multiservice WAN switches, IP Navigator MPLS, and
NavisCore and NavisXtend network management control software, which provides
end-to-end network management. IP Navigator MPLS allows service providers to
manage and provision IP services on the ATM backbone, which adds IP Layer 3
routing to Lucent's WAN switches and "absolute" quality of service (QoS). This
multiservice system allows service providers to deliver and manage all services
- ATM, Frame Relay and IP - from a single ATM core network and provides a
manageble, scalable, carrier-class network infrastructure specifically designed
for service providers. |
