

This IDC study, which is a translation of the Japanese report IDC #J9030106, analyzes and forecasts carrier router and Ethernet switch market in consideration to its relation with the trends in the network services market. While the enterprise market reaches maturity, the carrier market in the Japan network equipment market enjoyed remarkable growth in 2008 due to new investments on the next-generation network (NGN) implementation. In 2008, the edge router market expanded substantially following the launch of NGN services by the Nippon Telegraph and Telephone (NTT) group. Investments by mobile carriers are expected to increase most significantly in the future. The largest reason for the increase in expenditure is the development of IP/Ethernet implementation in mobile backbones/backhauls such as Long-Term Evolution (LTE).
"Vendors in the Japan carrier router market should equip their products for the small and medium providers with the features for efficient use of resources and high scalability, which are currently deployed only in high-end core routers. Vendors are required to help small and medium providers to reduce capex/opex and to increase return on investment (ROI)," says Kenichi Kusano, market analyst, Communications, IDC Japan.