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Lucent Technologies Leads in WAN Switching Solutions with Significant Revenue Growth

Strategic Insights

— 2 min read

Lucent Technologies has cemented its position as the world leader in providing WAN switching solutions to service providers, with significant revenue growth in 1999 in all WAN service provider segments, including ATM, Frame Relay, and Multiservice WAN. The company's market share in ATM equipment sales to service providers reached 36.1 percent, representing a 14 percentage point gain over 1998. Lucent's gains in the ATM market have also added to the company's lead in Multiservice WAN switching for service providers.

Key Takeaways:

  • Lucent Technologies ranked as the world leader in providing WAN switching solutions to service providers in 1999, with significant revenue growth in all WAN service provider segments.
  • In 1999, Lucent's market share in ATM equipment sales to service providers reached 36.1 percent, representing a 14 percentage point gain over 1998.
  • Lucent's gains in the ATM market have also added to the company's lead in Multiservice WAN switching for service providers.
  • According to Vertical Systems Group's "1999 Broadband Industry Update" report, Lucent captured the number one position in ATM equipment sales to service providers with 36.1 percent market share.
  • Lucent's market leadership in WAN switching solutions is based on its core data switching products, including the GX 550(TM) Smart Core ATM switch, CBX 500(TM) Multiservice WAN switch, and B-STDX 9000(TM) Multiservice WAN switch.
  • Lucent's WAN switching solutions also include IP Navigator(TM) MPLS, which allows service providers to manage and provision IP services on the ATM backbone, adding IP Layer 3 routing to Lucent's WAN switches.
  • The company's Multiservice WAN solutions provide service providers with the highest performance, scalability, capacity, and availability for building next-generation networks.
  • According to Dell 'Oro Group, Lucent is ahead of the market by as much as 20 percentage points over the nearest competitor in Multiservice WAN switching solutions.
  • Lucent's gains in the ATM market are also being fueled by the need to rapidly deploy digital subscriber line (DSL), packetized voice, and wireless networks.
  • Lucent's business continues to be strong, with several recent customer announcements, including China Unicom, Telefonica, Embratel, and AT&T Canada.

Statistics:

  • 1999: Lucent's market share in ATM equipment sales to service providers reached 36.1 percent, representing a 14 percentage point gain over 1998.
  • 1998: Lucent's market share in ATM equipment sales to service providers was 22.1 percent.
  • 1999: Lucent's market share in Multiservice WAN switching for service providers reached 38.8 percent, representing a gain of nearly 5 percentage points over 1998.
  • 1998: Lucent's market share in Multiservice WAN switching for service providers was 33.9 percent.
  • 1999: Lucent's market share in Frame Relay equipment sales to service providers reached 37.2 percent, representing a 15 percentage point lead over the nearest competitor.
  • 1998: Lucent's market share in Frame Relay equipment sales to service providers was 22.2 percent.

Sources:

  • "1999 Broadband Industry Update" report by Vertical Systems Group
  • Report by Dell 'Oro Group on the Service Provider Multiservice WAN Switching segment for 1999
  • Report by Synergy on the Worldwide Service Provider Multiservice WAN market
  • Report by Cahners In-Stat on the Service Provider ATM WAN Equipment market
  • Report by RHK on "Core Switching and Routing" covering the first half of 1999
  • Lucent Technologies press release, dated March 2, 2000.

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