The first half of 2010 has seen service providers increase their investment into network switches with support for IP communications, reports Dell'Oro Group.
In its Routers Quarterly Report, the analyst notes how demand for IP-based voice and video communications is driving capital expenditure (Capex) trends in Europe and North America.
Routers are sophisticated network switches with additional functionality, such as the ability to direct IP traffic from numerous local area networks to which they are connected.
"Even though service providers have tightened their Capex budgets due to weak economic conditions, they are allocating a greater portion of those budgets to strategic technologies such as IP routers," says Dell'Oro Group vice-president Shin Umeda.
This has driven growth of 15 per cent in the service provider routers market as measured by the analyst.
Dell'Oro Group's quarterly routers report segregates the market into two main groups, comprising core service providers and enterprise users.