Capex and Equipment Market Update: 2Q08

Abstract

Strong growth in global wireline equipment sales continued in 2Q08, as revenues grew 18.1% versus the year-ago period and 10.4% sequentially. The optical networking, switching and routing, and cable TV segments were up 17% or more each versus 2Q07, and broadband access revenues grew 4.6%. Cisco, Huawei, Juniper, and ZTE grew 4-quarter share the most,while Alcatel-Lucent and Tellabs had the largest share losses.

Table of Contents

EXECUTIVE SUMMARY

• In a Nutshell

Quarterly results

• Mobile spending is hot, fixed is patchy in 2Q08
• Strong fixed equipment sales growth continues in 2Q08
• Vendor share, rank, and revenue

The bottom line

• We remain positive on growth prospects for wireline equipment

List of Tables

• Table 1: 2Q08 operator revenues and capex versus 1Q08 and 2Q08 (global)
• Table 2: 2Q08 segment revenues versus 1Q08 and 2Q07 (global)
• Table 3: Top 15 wireline equipment vendors based on rolling 4Q sales
• Table 4: Telecom wireline equipment vendor market-share rank by segment
• Table 5: Telecom wireline equipment vendor revenues and share change

List of Figures

• Figure 1: Top-tier network operator revenue and capex trends (global)
• Figure 2: Telecom equipment market segment revenue trends (wireline)