ATM switch market to decline 3% in 2004

ATM switch market declined more than 6% during 2003 and is forecast to decline an additional 3% during 2004. Despite these challenges, the ATM switch remains an essential component of the ability of NSPs to offer frame relay and ATM services – a $25 billion market and one forecast to grow moderately over the next few years. Expected demand for more than 90 million new DSL subscribers will also help to stimulate sales, as the ATM switch remains a key part of DSL aggregation. Price erosion and technology competition from IP/MPLS routers remain as market inhibitors. The ATM switch will continue as a key part of most large NSP networks, but it is unlikely to be a growth market for network equipment providers.