The evolution of the multiservice WAN switch market presents unique opportunities and formidable challenges for vendors. Carrier commitment to Multiprotocol Label Switching (Mpls) marks a fundamental shift in vendor selection criteria used for multiservice WAN switches. A new competitive landscape also emerges, as vendors of carrier routers and multiservice WAN switches strive to establish their products as the foundation of a converged IP/Mpls core network. The players in this market are familiar: Nortel, Alcatel, Lucent, and Cisco vie for the market share lead while Marconi, WaveSmith, and others compete vigorously to take share from the incumbents. The -4.9 percent compound annual growth rate (Cagr) reflects a mature market characterized by intense competition and the sluggish economy in 2002 and 2003. This year will result in a total market of $1.82 billion, down 10 percent from 2002 but still a relatively healthy segment of the overall telecommunications equipment market.
